Groundbreaking Ceremony for Oyo State Special Agro-Industrial Processing Zone (SAPZ) to Kick Off Amidst High-Level Expectations

The Federal Government of Nigeria and the Oyo State Government, in partnership with the African Development Bank, are set to hold the groundbreaking ceremony for the Oyo State Special Agro-Industrial Processing Zone (SAPZ) on August 2, 2025. The ceremony will be headlined by Nigeria's Vice President, Kashim Shettima, African Development Bank Group head, Dr. Akinwumi A. Adesina, and Oyo State Governor, Engr. Seyi Makinde. The SAPZ Programme is a flagship of the Bank's Feed Africa strategy, aiming to transform Nigeria's rural economy by facilitating agro-industrialization, expanding market access, and attracting private sector investment.

Key Takeaways:

The Oyo State Special Agro-Industrial Processing Zone (SAPZ) is a flagship of the African Development Bank's Feed Africa strategy, aiming to transform Nigeria's rural economy through agro-industrialization, market expansion, and private sector investment.
The SAPZ Programme is a significant initiative of the Nigeria SAPZ Phase I, spanning seven states, including Kaduna, Cross River, Oyo, Ogun, Kwara, Kano, and Imo, with a total financing envelope of $538 million.
Oyo State, with a population approaching 8 million, is one of Nigeria's most agriculturally endowed states, with over 90% of its 28,454 square kilometers being arable, positioning it as a key contributor to Nigeria's agricultural output.
The 300-hectare SAPZ site in Ijaiye lies 29 kilometers from Ibadan, the Oyo State capital, connected to key infrastructure, including the Chief Obafemi Awolowo Railway Station (16 km) and a new road network.
The SAPZ will capitalize on Oyo's comparative advantage in cassava, maize, poultry, soybeans, and horticulture, and is supported by a $37 million financing package from the African Development Bank.
As part of the Oyo State SAPZ, an Agricultural Transformation Centre (ATC) is being developed in Eruwa, designed to serve smallholder farmers and youth agripreneurs through shared infrastructure and service platforms.
The Oyo State SAPZ launch signals the scale-up of integrated, inclusive agro-industrial growth across the country, with plans for another 24 states to join under Phase 2 of the SAPZ program.
Phase 2 generated $2.2 billion in global investment interest at the Africa Investment Forum in December 2024, underscoring the program's potential to drive economic growth and development.

Statistics:

Total financing envelope for Nigeria SAPZ Phase I: $538 million
Number of states participating in Phase I: 7
Population of Oyo State: approximately 8 million
Arable land in Oyo State: over 90% of 28,454 square kilometers
Size of the Ijaiye SAPZ site: 300 hectares
Size of the Eruwa agribusiness hub: 2,800 hectares
Financing package from the African Development Bank for Oyo SAPZ: $37 million
Investment interest generated by Phase 2 at the Africa Investment Forum: $2.2 billion

Sources:

(https://www.afdb.org/en/news-and-events/press-releases/nigerias-food-and-agriculture-revolution-takes-backed-african-development-bank-82711)
(https://www.afdb.org/en/news-and-events/press-releases/nigerias-cross-river-state-second-commence-construction-its-special-agro-industrial-processing-zone-82874#:~:text=President%20Adesina%20%28center%20in%20blue%20suit%29%2C%20Vice%20President,to%20become%20a%20food%20export%20leader%20through%20agro-industrialization.)
(https://www.africainvestmentforum.com/en/news/press-releases/nigerias-special-agro-industrial-processing-zones-sapz-phase-ii-boosted)