SAPZ will transform Nigeria’s agricultural landscape —Shettima
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- Agribusiness Africa
- April 9, 2025
- News & Analysis
Vice President Senator Kashim Shettima has commended Governor Uba Sani of Kaduna State for his commitment to transforming the state’s agricultural sector through the Special Agro-Industrial Processing Zone (SAPZ) project. Speaking at the groundbreaking ceremony of the SAPZ in Dakin Takwas village, along the Kaduna-Abuja Expressway, Shettima described the initiative as a reflection of result-oriented governance and federal commitment to agro-industrialisation.
Shettima praised President Bola Ahmed Tinubu for designating SAPZ as a priority initiative, highlighting its alignment with national goals to empower farmers, attract investment in processing, and scale agribusiness value chains. However, the Vice President cautioned against clinging to “outdated systems,” stressing the need for innovation in agricultural processing.
He stated that the SAPZ initiative would encourage collaboration between farmers, private investors, and entrepreneurs, resulting in sustainable agribusiness linkages, enhanced productivity, and long-term private sector growth.
Kaduna State’s selection as a SAPZ frontrunner is attributed to its vast arable land, natural resources, and existing agro-industrial potential. Governor Uba Sani emphasized that the project aims to transition Kaduna from a focus on primary production to value addition and agro-industrialisation.
Key infrastructure projects under the SAPZ include:
- An Agricultural Transformation Centre (ATC) in Dutsen-Wai, Kubau LGA, to support crop aggregation, processing, and storage, especially for maize, tomatoes, and ginger.
- An Agro-Industrial Hub (AIH) in Daki-Takwas, Chikun LGA, to serve as a logistics and processing nucleus for export-oriented agribusinesses.
The Governor explained that by clustering processing activities, Kaduna would cut post-harvest losses, improve efficiency, generate thousands of jobs, and contribute significantly to economic growth. He noted that the SAPZ would also strengthen Kaduna’s participation in the African Continental Free Trade Area (AfCFTA) by improving export readiness and earning foreign exchange.
Complementing the SAPZ, Kaduna is partnering with Afrexim Bank to establish an Agricultural Quality Assurance Centre (AQAC)—the first of its kind in Northern Nigeria. The AQAC will offer testing, certification, and quality assurance to meet international standards and enable access to premium export markets.
President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, praised Kaduna’s vision and confirmed the bank’s commitment to the SAPZ initiative, revealing that the AfDB has committed $200 million, with additional co-financing of $310 million from IFAD, IsDB, and the Green Climate Fund, totaling $510 million for Nigeria’s first SAPZ phase.
Dr. Adesina noted that the SAPZ model is being implemented across 27 locations in 11 African countries, with Nigeria’s rollout covering eight states and the Federal Capital Territory.
Source- Tribune Online
Expert Review for Agri-Food Stakeholders
As Kaduna State takes the spotlight with the rollout of its Special Agro-Industrial Processing Zone (SAPZ), it’s crucial for stakeholders across the agri-food value chain to look beyond the fanfare and explore the underlying implications. This review provides expert insights into how the SAPZ initiative can influence investment trends, market access, rural development, and export competitiveness in Nigeria’s agriculture sector.
Here are the key takeaways and strategic opportunities emerging from Kaduna’s SAPZ model:
- Kaduna’s Model Sets a Precedent for Agro-Industrial Zones in Nigeria
The SAPZ model in Kaduna exemplifies a scalable framework for rural transformation through infrastructure-led agri-development. It offers blueprints for other states aiming to unlock agricultural value chains beyond subsistence farming. - Value Chain Clustering Enhances Market Efficiency
The clustering of key infrastructures—processing, logistics, storage—within SAPZs reduces transaction costs and post-harvest losses, particularly in perishables like tomatoes and ginger. This positions Kaduna to become a regional agro-processing hub. - Export-Driven Agri-Industrialisation under AfCFTA
The integration of the Agricultural Quality Assurance Centre into the SAPZ framework is a bold move toward export compliance. For Nigerian agribusinesses to compete within AfCFTA, such quality infrastructure is essential to meet global standards. - Opportunity for Private Sector Participation
SAPZs are structured to catalyze private investment in agro-processing. Agribusiness firms, cooperatives, and investors should proactively engage with state-led frameworks to access incentives, land, and infrastructure support. - Unlocking Youth Employment in Agri-Sector
With a strong focus on processing and marketing, SAPZs will open new job opportunities across agri-logistics, ICT-driven extension, quality control, and agri-financing—creating value-added roles for Nigeria’s youth. - Multilateral Funding Boosts Investor Confidence
The combined $510 million investment by AfDB, IFAD, IsDB, and others signals strong global confidence in Nigeria’s agri-industrial potential. Local stakeholders must now match this momentum by scaling innovations, improving productivity, and ensuring policy continuity. - Lessons for Other States
Kaduna’s SAPZ success can serve as a template for replication in Oyo, Ogun, Kano, and other beneficiary states. Each state should define priority value chains, streamline regulatory approvals, and build enabling infrastructure to attract long-term agribusiness players.
The launch of the Special Agro-Industrial Processing Zone (SAPZ) in Kaduna marks a significant step toward transforming Nigeria’s agricultural sector into a globally competitive and industrialized force. By addressing critical infrastructure gaps, promoting value chain linkages, and attracting both public and private investments, SAPZ offers a sustainable model for reducing post-harvest losses and boosting export potential. With continued commitment from government and development partners, this initiative has the potential to reshape the future of Nigeria’s agribusiness landscape, driving economic growth and creating long-lasting job opportunities across the sector.
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