Nigeria’s Special Agro-Industrial Processing Zones programme has been projected to generate an internal rate of return of 30.85 per cent as the Federal Government moves to attract $4.4 billion in investment and accelerate agro-industrial development.

The figure was disclosed by the National Programme Coordinator of SAPZ, Dr Kabir Yusuf, during a stakeholder validation workshop on the draft SAPZ policy held in Abuja on Monday.

The workshop, themed “Facilitating Seamless Investment Entry and Operations in Nigeria’s Special Agro-Industrial Processing Zones,” brought together government agencies, development partners and private sector stakeholders to review the proposed policy framework.

According to Yusuf, the programme is also projected to generate a financial internal rate of return of 30.71 per cent, underscoring its potential to drive industrialisation, create jobs and strengthen agricultural value chains.

“The project has an economic internal rate of return of 30.85% and financial return of 30.71%.”

He described the validation process as a critical step towards establishing a comprehensive framework for the planning, development, regulation and sustainability of Special Agro-Industrial Processing Zones across the country.

“The policy was conceived not as another agricultural programme, but as an industrialisation programme anchored on agriculture,” Yusuf said.

Yusuf said the SAPZ policy is designed to attract private-sector capital, boost exports, enhance food security and promote value addition across agricultural supply chains.

He described the initiative as the “institutional glue” needed to transform agriculture from subsistence farming into a commercially viable and bankable industrial enterprise.

Rather than replacing existing policies, he said the framework would align agricultural, industrial, trade, investment and special economic zone policies to create a more coordinated ecosystem for agro-industrial growth.

The first phase of the programme currently covers seven states and the Federal Capital Territory, with plans for expansion to other parts of the country.

Yusuf cited comments by the Minister of Agriculture and Food Security, Senator Abubakar Kyari, who described Nigeria’s annual food import bill of more than $10 billion as unsustainable.

According to him, the minister noted that the country earns less than $400 million annually from agro-exports, highlighting the need to strengthen agricultural processing, logistics and market access.

Yusuf also noted that post-harvest losses remain a major challenge, with between 30 per cent and 60 per cent of farm produce lost before reaching markets.

He said these losses cost the country between $9 billion and $10 billion annually.

“Without roads, power, processing capacity, financing and market access, agricultural produce remains a low-value commodity. SAPZ exists to close that gap,” he said.

The programme coordinator noted that successful implementation of SAPZ would require coordination among more than 20 federal ministries, departments and agencies, state governments, development finance institutions and private investors.

Speaking at the event, the Country Director of the International Fund for Agricultural Development, IFAD, Mrs Dede Ekoue, said the policy should be structured to promote seamless investment flows while ensuring inclusive growth.

She stressed that smallholder farmers must be treated as key participants in Nigeria’s agro-industrial transformation rather than merely beneficiaries of government interventions.

Ekoue added that IFAD is supporting smallholder farmers, women, youth and rural enterprises under the SAPZ initiative to improve productivity, resilience, access to technology and market opportunities.

She also highlighted the importance of partnerships involving the African Development Bank, Islamic Development Bank and private-sector investors in ensuring the long-term success of the programme.

The workshop came shortly after the African Development Bank, AfDB, committed $86 million to the implementation of Nigeria’s Special Agro-Industrial Processing Zones, SAPZ, Programme, marking a major milestone in the country’s efforts to drive agro-industrial development and strengthen agricultural value chains.

According to the bank, the programme has recorded a commitment rate of 41 per cent and a disbursement rate of 12 per cent, equivalent to $25 million, with commitments expected to rise to 70 per cent and disbursements to 35 per cent by the end of 2026.