Nigeria Expands Agro-Industrial Footprint with New Processing Hub in Oyo State

Ibadan, Nigeria — Nigeria is accelerating its agricultural transformation with the launch of a new Special Agro-Industrial Processing Zone (SAPZ) in Oyo State, marking the program’s third site and the first in the country’s southwest region. 

The groundbreaking ceremony, held on August 2, 2025, in the Ijaiye community near Ibadan, showcased a strong partnership between federal, state, and international partners aimed at boosting rural industrialisation, agricultural value addition, and job creation.

The event was graced by Dr. Akinwumi Adesina, President of the African Development Bank (AfDB) Group, who was on his final official visit to Nigeria during his decade-long tenure. Also in attendance were Oyo State Governor Seyi Makinde and Nigeria’s Minister of Agriculture, Senator Abubakar Kyari, along with other dignitaries and stakeholders in agriculture and industry.

A Strategic Agro-Industrial Hub for Southwest Nigeria

Spanning 3,000 hectares with 300 hectares earmarked for immediate development, the Oyo SAPZ is set to host up to 40 agro-processing industries and is expected to create over 100,000 direct and indirect jobs. It will potentially impact the livelihoods of approximately half a million farmers by linking agricultural production directly to processing, packaging, and marketing industries.

Governor Makinde hailed the launch as a milestone that fulfils promises of sustainable development.

“These hubs bring producers closer to processors and link farms to markets. They reflect our belief that agriculture is not just about food, but about infrastructure, enterprise, and national relevance… agriculture feeds not just homes, but industries, sustaining families and entire economies.”

Minister Kyari emphasised the program’s alignment with Nigeria’s national vision. 

“The SAPZ initiative echoes the spirit of partnership and shared vision essential to Nigeria’s progress under President Bola Ahmed Tinubu’s Renewed Hope Agenda, restoring dignity, unlocking our potential, and creating opportunities for all citizens.”

The AfDB-Led SAPZ Program: Unlocking Value and Ending Poverty

Dr. Adesina underscored the broader vision behind SAPZs as pivotal to Africa’s agricultural and economic transformation. 

“Exporting primary commodities keeps countries poor; exporting value-added products drives wealth. We must link farm production to processing and logistics to change this trajectory.”

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“Our goals with SAPZs are clear: reduce post-harvest losses, develop critical infrastructure, build value chains, transform rural economies, and create millions of jobs.”

He credited the initiative’s success to three critical pillars: political will, resource mobilisation, and strategic partnerships. He also reflected on his decade leading the AfDB, where the Bank’s capital grew from $93 billion in 2015 to over $318 billion in 2024 and affirmed the Bank’s commitment to transparency and impact.

The SAPZ program is a flagship component of AfDB’s Feed Africa strategy, launched in 2015 and is being developed in 28 sites across 11 African countries. Nigeria’s SAPZ program remains the largest and most ambitious on the continent.

Hope and Opportunity for Communities and Agripreneurs

David Olatunji, Chairperson of the Ijaiye Farm Settlers Association, expressed enthusiasm about the project’s potential to activate local agricultural resources.

“We have vast, unbroken forests around us, and farmers are ready to work!”

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Dr. Adebowale Adeyeye, a local agribusiness entrepreneur specialising in soybean and cashew production, praised SAPZ’s potential to improve the business environment.

“With support in power, road access, and security, this initiative creates an enabling environment for scaling up operations, attracting investment, and strengthening value chains. It’s a game-changer for agribusiness competitiveness.”

Dr. Kabir Yusuf, National Coordinator of SAPZ Nigeria, announced plans to expand the program to an additional 10 states starting September 2025, marking the second phase aimed at covering the entire country.

Dr. Adesina was accompanied by senior AfDB officials, including Dr. Abdul Kamara, Director General for Nigeria; Prof. Oyebanji Oyelaran-Oyeyinka, Senior Special Adviser on Industrialisation and Richard Ofori-Mante, Director of Agricultural Finance and Rural Development.