All is now set for the groundbreaking ceremony of the Oyo State Special Agro-Industrial Processing Zone (SAPZ) tomorrow.

The Federal Government and the Oyo State Government will be joined by the African Development Bank for this event, which will be led by the Vice President, Kashim Shettima, AfDB Group President, Dr. Akinwumi A. Adesina, and Oyo State Governor, Seyi Makinde, along with senior government officials, development partners, and private sector leaders.

The SAPZ Programme is a flagship of the Bank’s Feed Africa strategy aimed at transforming Nigeria’s rural economy by promoting agro-industrialisation, expanding market access, and attracting private sector investment.

This ceremony, to be held in Ijaiye, Akinyele Local Council, 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 and Cross River states in April 2025. It highlights the Bank’s commitment to fostering regionally balanced agro-industrial development across Nigeria.

Nigeria’s SAPZ Phase I covers seven states plus the Federal Capital Territory (FCT): Kaduna, Cross River, Oyo, Ogun, Kwara, Kano, and Imo, with a total funding of US$538 million. The programme is co-financed by the African Development Bank, the Islamic Development Bank, and the International Fund for Agricultural Development, in addition to federal and state contributions.

Oyo State, with a population nearing eight million and the largest land area in the southern part of Nigeria, is one of the country’s most agriculturally rich states. Over 90 per cent of its 28,454 square kilometres is suitable for farming, making it a vital contributor to Nigeria’s agricultural output. Its proximity to Lagos—the most populous city and the largest subnational economy in Africa—makes it a natural centre for agro-industrial investment, trade, and market access.

The 300-hectare SAPZ site in Ijaiye is located just 29 kilometres from Ibadan, the capital of Oyo State, 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 modernised into an international cargo facility. These assets position Oyo State as a natural hub for domestic and export-oriented agro-processing.

Apart from the Ijaiye hub, the state is also establishing a 2,800-hectare agribusiness centre with an Agricultural Transformation Centre (ATC) in Eruwa, aimed at supporting smallholder farmers and youth agripreneurs through shared infrastructure and service platforms. Both facilities are backed by a $37 million financing package from the African Development Bank.

As the African Development Bank and the Government of Nigeria progress with the programme, the Oyo SAPZ launch marks the ongoing expansion of integrated, inclusive agro-industrial growth nationwide.

Under phase 2 of the SAPZ programme, an additional 24 states will join. Phase 2 attracted $2.2 billion in global investment interest at the Africa Investment Forum held in December 2024.