Third groundbreaking in 2025 under Phase I of the Nigeria SAPZ Programme; first in the country’s southwest
ABUJA, Nigeria, August 1, 2025/ — The Federal Government of Nigeria and the Oyo State Government will be joined by the African Development Bank (www.AfDB.org) for the groundbreaking ceremony of the Oyo State Special Agro-Industrial Processing Zone (SAPZ).
Headlining the ceremony, to be held 2 August 2025 in Ijaiye, Akinyele Local Government Area, will be Nigeria’s Vice President, Kashim Shettima, African Development Bank Group head, Dr. Akinwumi A. Adesina, and Oyo State Governor, Engr. Seyi Makinde, alongside senior government officials, development partners, and private sector leaders.
The SAPZ Programme is a flagship of the Bank’s Feed Africa strategy and aims to transform Nigeria’s rural economy by facilitating agro-industrialisation, expanding market access, and attracting private sector investment.
This marks the third groundbreaking under Phase I of the Nigeria SAPZ Programme, and the first in the country’s southwest, following successful launches in Kaduna (http://apo-opa.co/45vNMqL) and Cross River (http://apo-opa.co/4ovxCp4) States, in April 2025. It underscores the Bank’s commitment to fostering regionally balanced agro-industrial development across Nigeria.
Nigeria’s SAPZ Phase I spans seven states in addition to the Federal Capital Territory (FCT): Kaduna, Cross River, Oyo, Ogun, Kwara, Kano, and Imo, with a total financing envelope of $538 million. The programme is co-funded by the African Development Bank, the Islamic Development Bank, and the International Fund for Agricultural Development, alongside federal and state contributions.
Oyo State, with a population approaching 8 million and the largest landmass in the southern part of the country, is one of Nigeria’s most agriculturally endowed states. Over 90% of its 28,454 square kilometers is arable, positioning it as a key contributor to Nigeria’s agricultural output. Its proximity to Lagos – the most populous city and largest subnational economy in Africa – makes it a natural hub for agro-industrial investment, trade, and market access.
The 300-hectare SAPZ site in Ijaiye lies just 29 kilometres from Ibadan, the Oyo State capital, and is connected to key infrastructure, including the Chief Obafemi Awolowo Railway Station (16 km) and a newly upgraded road network that links to the Samuel Ladoke Akintola Airport – which is being modernized into an international cargo facility. These assets position Oyo State as a natural hub for domestic and export-oriented agro-processing.
The SAPZ will capitalize on Oyo’s comparative advantage in cassava, maize, poultry, soybeans, and horticulture.
In addition to the Ijaiye hub, the state is also developing a 2,800-hectare agribusiness hub with an Agricultural Transformation Centre (ATC) in Eruwa, designed to serve smallholder farmers and youth agripreneurs through shared infrastructure and service platforms. Both facilities are supported by a $37 million financing package from the African Development Bank.
As the African Development Bank and the Government of Nigeria advance the program, the Oyo SAPZ launch signals the continued scale-up of integrated, inclusive agro-industrial growth across the country.
Under phase 2 of the SAPZ program, another 24 states will come on board. Phase 2 generated $2.2 billion in global investment interest at the Africa Investment Forum held in December 2024 (http://apo-opa.co/3UFakPH).
Distributed by APO Group on behalf of African Development Bank Group (AfDB).