Nigeria expanded its network of Special Agro-Industrial Processing Zones on August 2, 2025, with the groundbreaking of a new facility in Ijaiye, Akinyele Local Government Area of Oyo State. The ceremony was attended by Nigeria's Vice President Kashim Shettima, AfDB Group President Dr. Akinwumi Adesina, and Oyo State Governor Seyi Makinde, with Adesina making his final official visit to Nigeria in his role as AfDB President.
What the Oyo Zone Will Deliver
Covering 3,000 hectares, with 300 hectares designated for immediate development, the Oyo SAPZ is expected to host up to 40 agro-processing industries, create over 100,000 direct and indirect jobs, and benefit half a million farmers. The zone is the first SAPZ in southwest Nigeria, following earlier launches in Kaduna and Cross River States in April 2025. Africa-newsroom
The SAPZ model is designed to link primary agricultural production to processing, storage, and export infrastructure, reducing the post-harvest losses that currently account for a significant share of Nigeria's annual food waste. The SAPZ Programme is working to transform Nigeria's rural economy into zones of prosperity by facilitating industrial processing, expanding market access, and attracting private sector investment. The Zones are being developed in 28 sites across 11 African countries, with the Nigeria programme being the largest. Global Agriculture
The Funding Structure
The programme is financed by the African Development Bank, in partnership with the Islamic Development Bank, the International Fund for Agricultural Development, and Nigeria's federal and state governments. Together, they have committed $538 million to the first phase of the programme, covering seven states and the Federal Capital Territory. Global Agriculture
Phase Two Announced
Dr. Kabir Yusuf, National Coordinator of SAPZ Nigeria, announced plans to expand the programme to an additional 10 states from September 2025, marking the beginning of the second phase that will cover the remaining states in the country. With 28 additional states wanting to join, the trajectory of the programme is from pilot zones to a national agro-industrial network. Africa-newsroom
Why Southwest Nigeria Was Next
Oyo State is one of Nigeria's most agriculturally productive states, with strong output of cassava, yam, maize, cocoa, and soybean. Proximity to Lagos, Nigeria's largest consumer market, makes the Ijaiye zone a natural processing hub. The Governor of Oyo State, Seyi Makinde, has overseen a sharp increase in the state's agricultural budget, and the SAPZ site is positioned to absorb smallholder produce that currently reaches Lagos in raw, unprocessed form, generating value before it enters the supply chain.
FoodPrices Nigeria tracks prices for cassava-derived products including garri across Lagos markets. The Oyo SAPZ, when operational, is designed to be exactly the kind of infrastructure that determines what processors pay for raw cassava and what consumers pay for the finished product.