Nigeria has inaugurated a new agro-industrial hub in Oyo State under the country’s Special Agro-Industrial Processing Zones (SAPZ) program, adding to an emerging network of rural economic zones aimed at overhauling the role of agriculture in the national economy. The development, which took place in the Ijaiye-Eruwa corridor near Ibadan, marks the third SAPZ launched in 2025 and the first in the southwest region. It is being developed with funding and technical support from the African Development Bank Group (AfDB), alongside the Islamic Development Bank, the International Fund for Agricultural Development (IFAD), and Nigerian federal and state governments.
The Oyo site will cover 3,000 hectares, with 300 hectares already marked for the first phase of construction. The zone is expected to host up to 40 agro-processing companies, targeting the creation of over 100,000 direct and indirect jobs. An estimated 500,000 farmers in the surrounding areas could benefit from increased access to processing, logistics, and markets once the zone becomes operational. This effort reflects a broader shift in agricultural policy that seeks to integrate food production with processing and distribution through localized industrial hubs.
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Speaking at the groundbreaking ceremony, AfDB President Dr. Akinwumi Adesina said that the continued export of unprocessed agricultural goods had limited economic gains across the continent. According to Adesina, countries like Nigeria must invest in infrastructure and logistics that allow them to retain value from agricultural output. He emphasized that the SAPZ model is designed to address weak linkages between production, processing, and distribution—an issue that has historically kept rural areas disconnected from both markets and national planning priorities.
Oyo State Governor Seyi Makinde described the zone as a necessary investment in productive infrastructure, noting that the project ties into the state’s plans to treat agriculture as a commercial sector rather than a subsistence activity. He explained that by locating processing closer to farms, costs are reduced, market access is improved, and farmers are more likely to engage in consistent production. The state government has committed to integrating road access, storage facilities, energy supply, and basic services such as healthcare and communications infrastructure into the zone.
Nigeria’s Minister of Agriculture, Abubakar Kyari, who represented the federal government, said the SAPZs were in line with the administration’s broader effort to restructure the national economy. He pointed to agriculture as one of the few sectors that could provide employment at scale while also reducing import dependency. The federal government’s backing of the project includes policy coordination and investment incentives, especially in areas with high production potential but weak infrastructure.
For AfDB, the SAPZs form a central pillar of its agricultural development strategy. Since launching the “Feed Africa” framework in 2015, the Bank has worked with multiple countries to structure rural investment in ways that support long-term economic activity. Nigeria’s SAPZ program is the largest and most advanced of these, but the Bank has similar operations underway in Ethiopia, Côte d’Ivoire, Mozambique, Togo, and several others. In Ethiopia, for example, coordinated agricultural policy has helped the country significantly expand domestic wheat production, reducing reliance on imports.
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Professor Oyebanji Oyelaran-Oyeyinka, Senior Special Adviser on Industrialization to the AfDB President, explained that the SAPZ concept had been in development since 2011, when Dr. Adesina served as Nigeria’s Minister of Agriculture. According to Oyelaran-Oyeyinka, the model being implemented today draws on over a decade of policy experimentation and emphasizes adaptability to local conditions. He said that for the zones to be effective, investment must be accompanied by coordination between government, the private sector, and community stakeholders.
Farmers and agribusiness owners in the Oyo SAPZ catchment area have expressed cautious optimism. David Olatunji, who leads the Ijaiye Farm Settlers Association, said the land surrounding the site remains underutilized and could be brought into production with the right inputs and support. He stressed that infrastructure is often the missing factor that keeps smallholder farmers from expanding. Dr. Adebowale Adeyeye, who runs a soybean and cashew processing business, said that being located within the SAPZ could allow his firm to reduce transportation costs and scale production, assuming stable electricity, access roads, and security are in place.
AfDB officials confirmed that Nigeria’s SAPZ program will enter its second phase in September 2025, expanding to 10 more states. The long-term goal is to establish these zones across all parts of the country, creating a national network of agro-industrial nodes. Dr. Kabir Yusuf, National Coordinator for the SAPZ program, said the expansion strategy will be based on production potential, private sector interest, and the ability of state governments to provide supporting infrastructure.
The Oyo SAPZ offers a practical case study of how coordinated investment in agriculture can be used to support rural industrialization. Rather than treating farming as an isolated sector, the project integrates it with logistics, processing, and service delivery. While the approach still faces implementation risks—including governance, land use tensions, and financing gaps—it reflects a broader policy shift taking shape across Africa, one that treats agriculture as a foundation for economic growth rather than an inherited burden.
As the largest economy on the continent, Nigeria’s choices around agricultural policy have implications well beyond its borders. The SAPZ program shows how regional and national planning can converge when supported by clear investment frameworks and long-term development goals. For African countries seeking to reduce their dependence on imports while creating employment in rural areas, this model may offer lessons worth examining—and adapting to fit their own realities.
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