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FG Expands SAPZ Coverage with $1bn AfDB Loan

Federal government secures a $1bn AfDB loan to extend the Special Agro-Industrial Processing Zones (SAPZ) across more States
SAPZ loan

The Federal Government has confirmed plans to expand the coverage of the Special Agro-Industrial Processing Zones (SAPZ) to more States with a $1 billion loan secured from the African Development Bank (AfDB). This major boost comes as part of the Renewed Hope Agenda of President Bola Tinubu, which prioritizes inclusive national development in the agriculture and food security sectors.

Minister of Agriculture and Food Security, Abubakar Kyari, made the announcement in Abuja, dismissing claims from the North-East National Assembly Caucus that their region was being sidelined. He explained that the administration’s decision, following a strategic review, was to ensure that no State would be left behind in the SAPZ programme rollout.

Kyari highlighted the pivotal role played by Vice President Kashim Shettima, who led key international missions to Rome and Iowa. These engagements resulted in the AfDB’s commitment of a $1 billion loan to bring more States into the programme. He stressed that this funding was dedicated solely to onboarding new States to SAPZ and expanding its national reach.

The SAPZ programme was conceptualized in 2019 and officially launched in 2022. According to the Minister, the programme is a Federal Government-enabled initiative that allows State Governments to subscribe voluntarily. All States were informed in writing to express interest and fulfill set eligibility criteria. Following a verification mission carried out by the Federal Ministries of Agriculture, Finance, and the AfDB, only eight States and the FCT qualified for Phase 1. These include Kaduna, Kano, Kwara, Oyo, Ogun, Imo, Cross River, and the Federal Capital Territory.

Kyari emphasized that SAPZ is structured as a Subsidiary Loan Agreement Programme, where the Federal Government facilitates the loan and onboard States for actual project implementation. Participation, however, remains at the discretion of the individual State Governments. Some States either failed to express interest or did not meet the required criteria, which led to their exclusion from the first phase.

Responding to the concerns raised by North-East lawmakers, the Minister clarified that Phase 2 has already begun. Out of 27 States that submitted Expressions of Interest for Phase 2, only 10 fully met the eligibility conditions. Among these, three States from the North-East Gombe, Borno, and Bauchi are already included in the first tranche of Phase 2. He stated that Phase 2 will involve three separate tranches of onboarding, and more States can still be included as they meet the necessary requirements.

He called on the legislators to encourage the remaining North-East States Taraba, Yobe, and Adamawa to demonstrate interest and comply with the eligibility benchmarks to be considered in the next tranche. Kyari reiterated that the goal is full national participation, with all States eventually integrated into the SAPZ network.

As part of the broader food security strategy, the President has also approved the establishment of the Presidential Food System Coordination Council, chaired by the Vice President and including governors from each geo-political zone, along with other critical stakeholders. This council is tasked with ensuring strategic alignment across the board on food production, processing, and distribution.

The Minister concluded by reaffirming that beyond the SAPZ loan initiative, the government continues to implement various targeted support programs for farmers across Nigeria, including the North-East. He emphasized that the President’s Renewed Hope Agenda is anchored on national inclusivity, agricultural modernization, and economic empowerment for all regions.

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