AfDB reaffirms $2.2bn pledge as Shettima launches Cross River SAPZ - Businessday NG (2025)

The Federal Government has flagged off construction of the Special Agro-Industrial Processing Zone (SAPZ) in Calabar, Cross River State, as part of a nationwide initiative to transform Nigeria’s agricultural sector and drive inclusive economic growth.

This marks the second groundbreaking ceremony within 72 hours, following Vice President Kashim Shettima’s earlier commissioning of the Kaduna SAPZ in Chikun Local Government Area.

Reaffirming its support, the African Development Bank (AfDB) has pledged to mobilise $2.2 billion for the second phase of the SAPZ programme, which will span 28 states across the country.

Speaking during the event on Thursday, Vice President Shettima described the SAPZ as “a game changer,” aligning with the Tinubu administration’s Renewed Hope Agenda to diversify the economy, enhance food security, reduce rural unemployment, and empower farmers and youth.

“There is no intervention more practical in our dream of a nation where the potential of agriculture is maximised than what’s brought us together today. This isn’t just a project—it’s a bold vision to transform Nigeria’s agricultural value chain,” the Vice President said.

He explained that the SAPZ initiative, backed by development partners and the private sector, aims to resolve critical challenges in Nigeria’s agricultural landscape, including limited market access, insufficient processing infrastructure, and persistent rural unemployment.

“For far too long, our farmers have contended with poor infrastructure, lack of access to finance, and inadequate processing facilities. This zone is designed to confront those challenges head-on by creating an ecosystem where innovation, investment, and collaboration thrive,” he added.

According to Shettima, the Calabar SAPZ will function as a central hub for agro-processing and storage, enabling farmers and agripreneurs to scale operations and access both local and global markets.

“This is where farmers will meet with private investors, where ideas will turn into enterprise, and where our youth will find meaningful opportunities,” he stated, disclosing that SAPZs have been classified as a national priority under the Renewed Hope Agenda, with plans to institutionalise them as a government agency.

“These zones will generate thousands of jobs. They will create opportunities for young people, empower them with skills and knowledge to engage in meaningful work and help them contribute positively to the economy. Cross Riverians, development has come to your doorstep. For you and for the country, SAPZ is a game changer—one that will enable Nigeria to diversify its economy with a sustainable source,” he noted.

The Vice President also expressed appreciation to key international partners, including the African Development Bank, the Islamic Development Bank, and the International Fund for Agricultural Development, for supporting Nigeria’s vision.

He praised Cross River State Governor, Senator Prince Bassey Edet Otu, for his collaboration, describing him as “a critical foundation for the success of this intervention and a great ally in development.”

In his remarks, Governor Otu described the project as a turning point in his administration’s push to fully tap into the renewable agricultural potential of Cross River State.

He stated that the establishment of smallholder farmer clusters producing rice, cassava, millet, and cocoa marks a significant step toward the state’s agro-industrial revolution.

Otu emphasised the shift from a non-renewable to a renewable resource base, saying, “The deliverables of the envisaged projects are food security, diversification of the state economy towards export-oriented trajectory and increase in the state’s GDP. When these projects are fully operational, there is an expected robust collaboration with reputable agro-based processing institutes, universities and the rest, aimed at accelerating breakthroughs in many agro-industrial production.”

Also speaking, the Minister of Agriculture and Food Security, Senator Abubakar Kyari, said the SAPZ will reshape the agricultural and agro-investment landscape under President Tinubu’s Renewed Hope Agenda.

He commended Vice President Shettima for providing political leadership and praised Governor Otu for ensuring Cross River’s readiness for early implementation.

AfDB President, Dr. Akinwumi Adesina, reiterated the bank’s commitment to mobilising $2.2 billion for the SAPZ’s second phase, covering 28 states.

Dr. Adesina said Cross River’s rich agricultural output—including cocoa, rice, cassava, and banana—makes it strategic to Nigeria’s agricultural transformation. He also highlighted the Obudu Cattle Ranch’s livestock potential.

“Cross River is ideal for SAPZ because of its export processing zone, port facility, and export handling capabilities,” he noted. “The SAPZ in Calabar can be linked to the seaport for transporting processed agricultural commodities to export markets, including Cameroon.”

Adesina stated, “The African Development Bank, as you know, is spearheading this together with our partners, which include the Islamic Development Bank and the International Fund for Agricultural Development, and we have put together $934 million from the African Development Bank, with core financing of $938 million from these partners.”

He revealed that the first phase of SAPZ implementation spans eight states—Cross River, Kaduna, Kano, Katsina, Oyo, Ogun, Kwara, and Imo—and the Federal Capital Territory.

“We have put together a financing package of $510 million to make this work. We expect, in the second phase of this, to mobilise $2.2 billion to be able to work for 28 states across the federation with several partners,” he said.