Nigeria deepens agro-industrial drive with launch of Oyo SAPZ

NIGERIA – The Oyo State government, in partnership with the African Development Bank (AfDB) and Nigeria’s Federal Government, officially launched the Special Agro-Industrial Processing Zone (SAPZ) in Ijaiye, Akinyele Local Government Area, on August 2, 2025.

Nigerian Vice President Kashim Shettima, AfDB Group President Akinwumi A. Adesina, and Oyo State Governor Seyi Makinde led the inauguration, joined by senior government officials, development partners, and private sector representatives.

Speaking at the event, Vice President Shettima said, “This is a turning point for the people of Oyo and for Nigeria’s agricultural economy. What we are witnessing today reflects what can happen when partners work together with one goal.”

The SAPZ in Oyo is the third to be launched in Nigeria and the first in the country’s southwest. Earlier in April, the AfDB inaugurated similar centers in Kaduna and Cross River States. The Oyo launch reflects a broader national effort to grow rural economies through agro-industrial development.

Governor Makinde emphasized the state’s readiness to support agribusiness investors, noting, “Oyo State has the land, the people, and now, the infrastructure. We welcome private sector players ready to work with us in feeding Nigeria and expanding our trade reach.”

AfDB President Akinwumi Adesina described the SAPZs as “special economic zones for agriculture,” adding, “They are designed to attract investments, process locally grown crops, and create strong value chains that benefit farmers and businesses.”

Why Oyo State matters

Oyo State, with nearly eight million people and the largest landmass in southern Nigeria, is a key contributor to the country’s food production. Over 90 percent of its 28,454 square kilometres is arable land.

Its close distance to Lagos, Africa’s biggest city and economic center, positions it as a strategic trade and investment location.

The Ijaiye SAPZ site spans 300 hectares and lies just 29 kilometres from Ibadan. It connects directly to the Chief Obafemi Awolowo Railway Station and a recently upgraded road network that links to Samuel Ladoke Akintola Airport. These infrastructure assets aim to ensure smooth access to both domestic and export markets.

The facility will focus on processing crops like cassava, maize, soybean, and horticultural produce, as well as poultry. A second project in Eruwa, supported by US$37 million in AfDB financing, will bring a 2,800-hectare agribusiness hub that includes shared services for smallholder farmers and young agro-entrepreneurs.

Looking Ahead

The Oyo SAPZ is part of the program’s first phase, which covers seven Nigerian states and the Federal Capital Territory. It is co-financed by the AfDB, the Islamic Development Bank (IDB), the International Fund for Agricultural Development (IFAD), and the Nigerian government, with a total investment of US$538 million.

The next phase of the SAPZ program is already taking shape. Twenty-four other Nigerian states are lined up to benefit. At the African Investment Forum in December 2024, held in Rabat, Morocco, this second phase attracted US$2.2 billion in investment interest.

As Adesina said during the launch, “We are not just creating infrastructure. We are building industries, creating jobs, and keeping value within our communities. This is how we grow.”

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.