AfDB Pledges $1 Billion Investment to Boost Nigeria’s Agricultural Value Chains

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The African Development Bank (AfDB) is set to invest $1 billion in the second phase of the Special Agro-Industrial Processing Zones (SAPZ) programme across 28 states in Nigeria. This ambitious initiative was revealed by AfDB President, Akinwumi Adesina, during the inauguration of a soybean plant and refinery by CSS Global Integrated Farms in Gora, Nasarawa State. Adesina emphasized that the refinery would help reduce Nigeria’s dependence on crude soybean oil imports, which totaled $62.2 million in 2023.

In his address, Adesina called for urgent action from the Nigerian government to implement robust policies aimed at boosting local food production and addressing the country’s escalating food prices. He specifically cited the significant rise in rice prices, now exceeding N100,000 per bag, compared to N8,000 a decade ago when he served as Minister of Agriculture. He stressed that enhancing agricultural value chains and supporting farmers and agribusinesses would be key to improving food security in Nigeria.

The first phase of the SAPZ programme, currently funded at $538 million, is already underway in seven states—Cross River, Imo, Oyo, Ogun, Kaduna, Kano, and Kwara—along with Abuja. The second phase, which will involve all remaining states, is set to bring in additional funding from both the Arab Bank for African Economic Development and private sector investors. The expansion aims to cover 28 states, focusing on improving agricultural production and value addition across the country.

Adesina also pointed out that Nasarawa State, where the soybean refinery is located, will be a major beneficiary of the upcoming phase of the SAPZ programme. The investment in Nasarawa aligns with the AfDB’s strategy to strengthen agricultural infrastructure and create sustainable economic growth through agro-processing initiatives. Adesina highlighted that CSS Farms, as a key investor in the region, will play a crucial role in the success of the programme by driving agricultural growth and increasing food production capacity.

The AfDB President’s visit to the new soybean plant reflects the bank’s ongoing commitment to supporting Nigeria’s agricultural sector. By fostering partnerships with the private sector and local governments, the SAPZ programme aims to increase the country’s food production capacity while creating jobs and contributing to economic development.

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