The success of the Special Agro-Industrial Processing Zones (SAPZ) programme is critical to Nigeria’s economic stability and growth, according to Minister of Finance and Coordinating Minister of the Economy, Wale Edun. Speaking at the SAPZ-1 High-Level Implementation Acceleration Dialogue and State Steering/Technical Committee Workshop, Edun underscored the vital role food production plays in reducing inflation, lowering interest rates, and strengthening the exchange rate.
The workshop, organised by the Federal Ministry of Agriculture and Food Security in partnership with Development Financing Institutions (DFIs) including the African Development Bank (AfDB), the International Fund for Agricultural Development (IFAD), and the Islamic Development Bank (IsDB), brought together key stakeholders to discuss the progress and future of the SAPZ programme.
Edun stressed that food makes up 50% of Nigeria’s Consumer Price Index, making it a key factor in economic stability. “A successful food production outcome would drastically bring down inflation, reduce interest rates, strengthen the exchange rate, and encourage private sector investment,” Edun said.
The SAPZ programme, part of President Bola Ahmed Tinubu’s macroeconomic stabilisation efforts, aims to drive Nigeria’s agro-industrial development and modernise the economy. The programme, supported by DFIs, targets increasing agricultural productivity and competitiveness, creating over 400,000 direct jobs and 1.6 million indirect jobs across the country. Implementation is already underway in seven states, with an additional focus on exports, trade balance, and boosting foreign exchange reserves.
Minister of Agriculture and Food Security, Abubakar Kyari, highlighted the SAPZ programme’s potential to revolutionise Nigeria’s agricultural sector, with projections of a 50-100% increase in staple crop yields and a reduction in post-harvest losses from 45% to 20%. The programme is expected to generate 500,000 direct and indirect jobs and 2.5 million temporary jobs related to infrastructure development.
Dr. Abdul Kamara, Director General of the Nigeria Country Department at AfDB, praised the Nigerian government’s commitment to the programme and called for strengthened efforts to accelerate its implementation. He noted that SAPZ has the potential to transform Nigeria’s rural economy and boost industrialisation, similar to Ethiopia’s success in agricultural transformation.
In her remarks, IFAD Country Director Dede Ekoue expressed strong support for the programme, particularly in the states of Kano and Ogun, where pilot projects are already improving rice and tomato farming.
As Nigeria moves towards food self-sufficiency, the SAPZ programme is seen as a cornerstone of President Tinubu’s agenda for food security, agro-industrialisation, and inclusive economic growth. With Phase Two in development, stakeholders remain optimistic about the programme’s potential to reshape Nigeria’s agricultural landscape and stimulate economic growth.
