The Federal Government, in collaboration with development partners, has stepped up efforts to accelerate the implementation of the Special Agro-Industrial Processing Zones (SAPZ) Programme, a major agricultural initiative projected to generate more than 500,000 direct and indirect jobs in each project location while significantly reducing post-harvest losses across the country.
The renewed commitment was underscored at the SAPZ Programme Mid-Term Review Workshop in Abuja, where stakeholders reviewed progress under the first phase of the programme and identified strategies to overcome implementation bottlenecks.
Speaking at the event, the Permanent Secretary of the Federal Ministry of Agriculture and Food Security, Dr. Marcus Ogunbiyi, described SAPZ as a cornerstone of Nigeria’s agricultural transformation strategy and a critical vehicle for achieving the objectives of President Bola Tinubu’s Renewed Hope Agenda.
According to him, the programme goes beyond increasing agricultural production and seeks to reposition the sector as a competitive, value-driven industry capable of stimulating economic growth, creating jobs, enhancing food security and boosting export earnings.
He noted that SAPZ was conceived to address long-standing challenges within Nigeria’s agricultural value chains, including poor market access, inadequate processing facilities, weak storage systems, limited value addition and high post-harvest losses.
“The programme is designed to create integrated agro-industrial hubs that connect farmers to processors, storage facilities, logistics networks and markets within designated economic zones,” Ogunbiyi said.
He said the first phase of the programme is currently being implemented in seven states and the Federal Capital Territory (FCT), while preparations for a second phase are already at an advanced stage.
The Permanent Secretary revealed that the initiative is expected to create approximately 500,000 direct and indirect jobs in each participating location and generate about 2.5 million temporary jobs through infrastructure construction and associated economic activities.
He added that SAPZ aims to increase agricultural productivity from current levels of between five and 10 per cent to as high as 50 to 100 per cent while reducing post-harvest losses from about 45 per cent to 20 per cent.
Despite the ambitious targets, Ogunbiyi acknowledged that implementation has faced challenges, including slow fund disbursement, procurement delays, prolonged approval processes and sluggish infrastructure development in some participating states.
He stressed the need for stakeholders to critically assess implementation gaps and adopt practical measures to improve project delivery.
“We must identify the factors slowing implementation, address emerging risks and ensure that the programme delivers on its promises within the stipulated timeframe,” he said.
In a related development, Ogunbiyi announced that over 100 agribusiness enterprises and entrepreneurs recently received the SON/ARSO Quality Mark, while more than 178 processed agricultural products obtained African Quality Standard Certification.
He explained that the certifications would enable beneficiaries to access markets across the continent under the African Continental Free Trade Area (AfCFTA), thereby strengthening Nigeria’s export competitiveness.
Providing an overview of the programme, National Programme Coordinator of SAPZ, Dr. Kabir Yusuf, said the initiative was jointly developed by the Federal Ministry of Agriculture and Food Security, the African Development Bank (AfDB), the International Fund for Agricultural Development (IFAD), the Islamic Development Bank (IsDB) and participating state governments.
According to him, the first phase covers Kano, Kaduna, Imo, Cross River, Kwara, Ogun and Oyo states, as well as the Federal Capital Territory.
Yusuf said the programme is designed to promote inclusive and sustainable agro-industrial development, reduce dependence on food imports and unlock private-sector investment across agricultural value chains.
“SAPZ provides a platform for attracting investments into value-added agro-processing, creating jobs, improving food security, generating export earnings and increasing agriculture’s contribution to the national economy,” he said.
He further disclosed that the proposed second phase of the programme has been structured into three tranches to build on lessons learned from the first phase.
According to him, the first tranche will focus on 10 states selected based on the quality of feasibility studies, evidence of private sector interest and the availability of existing infrastructure requiring minimal upgrades.
The remaining states, he said, would be considered under subsequent tranches based on readiness, environmental and social assessments, and available funding.
Also speaking, representative of the IFAD Country Director in Nigeria, Isaac Mensah, said the programme had already delivered tangible benefits to thousands of smallholder farmers.
He disclosed that IFAD-supported interventions under SAPZ have reached more than 17,000 farmers in Kano and Ogun states, while over 14,000 farmers have received climate information services to improve resilience and productivity.
Mensah added that more than 9,000 farmers had benefited from improved agricultural inputs and that the programme had strengthened market access through the Multi-Stakeholder Agribusiness Forum.
He announced that IFAD had approved an additional $50 million investment in the programme, increasing its total commitment to $100 million.
According to him, SAPZ remains a strategic platform for linking farmers to markets, reducing post-harvest losses, stimulating private-sector participation and promoting inclusive agricultural growth.
On his part, SAPZ Task Manager at the African Development Bank, Benard Onzima, described the programme as a transformational intervention aimed at raising rural incomes, improving food security and driving sustainable agro-industrialisation.
He explained that the initiative clusters agro-processing industries around areas with strong agricultural potential, enabling efficient production, aggregation, processing and distribution within a modern infrastructure framework.
Onzima disclosed that although the project received AfDB approval in December 2021, implementation only commenced in March 2023 after the fulfilment of key disbursement conditions in August 2023.
He noted, however, that implementation gained significant momentum in 2025.
“As of March 31, 2026, the programme had recorded a commitment rate of 41 per cent, equivalent to $86 million, while actual disbursement stood at 12 per cent, representing $25 million,” he said.
He expressed optimism that commitment levels would rise to 70 per cent and disbursement rates to 35 per cent by the end of 2026.
The AfDB official also revealed that preparations for Phase II are ongoing, with development partners working to mobilise additional investments expected to further transform Nigeria’s agro-industrial sector, create jobs and expand opportunities for young entrepreneurs across the country.
The Nation
