NIGERIA - Special Agro-Industrial Processing Zones Program, Phase I (SAPZ I)


Project Summary

Approval Date 13 Dec 2021
Signature Date 30 Jun 2022
Planned Completion Date 31 Dec 2027
Sovereign / Non-Sovereign Sovereign
Sector Agriculture and Rural Development
DAC Sector Code 31162
Environmental Category 1
Commitment U.A 120,501,890.37
Status Implementation

Project General Description

The first Phase of Special Agro-Industrial Processing Zones (SAPZs) Program will be implemented in seven (7) states (Cross River, Imo, Kaduna, Kano, Kwara, Ogun, and Oyo) and the Federal Capital Territory (FCT). The Program development objective is to support inclusive and sustainable agro-industrial development in Nigeria. The Program has four broad components namely:(i) Support the development of enabling climate adapted infrastructure for Agro-Industrial Hubs (AIHs), (ii) Improve agricultural productivity and enterprise development to enhance agricultural value chains and job creation in the SAPZ Catchment Areas, (iii) Support Agro-Industrial Zone Policy and Institutional Development, and (iv) Program Coordination and Management. The key expected outputs of the SAPZ Program(Phase I) are: development of infrastructure for eight (8) Agro-Industrial Processing Hubs (AIHs),fifteen (15)Agricultural Transformation Centers (ATCs), 2,300 ha of irrigated lands and farm to market access roads; supply of certified agricultural inputs and extension services; skills development for farmers and Micro, Small and Medium Scale Enterprises (MSMEs), an updated agro-industrial zone policy and establishment of regulatory institution/special regulatory regime. SAPZ Program (Phase I) will be implemented over five years (2022 –2026). The total cost for the SAPZ Program (Phase I) is estimated at USD 538.05 million net of taxes. The African Development Bank will provide an ADB Loan of USD 160 million (29.7% of total cost) together with an Africa Growing Together Fund (AGTF) loan of USD 50 million (9.3%).

Project Objectives

The SAPZ Program goal is to increase household incomes, foster job creation in rural agricultural communities, especially for youth and women, and enhance food and nutritional security in Nigeria. The development objective is to support inclusive and sustainable agro-industrial development. The SAPZ Program interventions will seek to enhance the competitiveness of selected value chains. This will be achieved through increased productivity, aggregation and reliable supply of quality raw materials, value addition, market access and private sector investment. While Phase I of the SAPZ Program will be carried out in 7 States and the Federal Capital Territory (FCT), it will be rolled out to more states in subsequent phases.

Beneficiaries

About 1.5 million households would be direct beneficiaries along the entire agricultural value chain, including private sector agribusinesses and agro-processors, smallholder farmers, agri-preneurs and agro-dealers. The SAPZ Program (Phase I) targets the creation of a minimum of 400,000 jobs, and up to1.6 million indirect jobs. The jobs will be created during the construction and operational phases, and include jobs created by MSMEs’ along the value chain and factory jobs created by the tenant industries in the Agro Industrial Hubs.

Participating Organization

Funding
African Development Bank
Implementing
Federal Ministry of Agriculture & Rural Development

Information

IATI identifier 46002-P-NG-AAA-002
Last Update 03 Oct 2022

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Contact Details

Name NYAMBE Monde
Email m.nyambe@afdb.org

Geographic Location

Country Nigeria
Coordinates Location Name
5.75 8.5 Cross River State
8 4 Oyo State
10.33333 7.75 Kaduna State
5.5 7.16667 Imo State