The Federal Government of Nigeria, in partnership with the Oyo State Government and the African Development Bank (AfDB), is set to launch a major agricultural and industrial project designed to transform the state’s economy and strengthen Nigeria’s position as a regional leader in agro-processing.
Today, the 2nd of August 2025, Ijaiye in the Akinyele Local Government Area of Oyo State is hosting the groundbreaking ceremony of the Oyo State Special Agro-Industrial Processing Zone (SAPZ). The event will bring together key national and international figures, including Nigeria’s Vice President, Kashim Shettima, the President of the African Development Bank Group, Dr Akinwumi A. Adesina, and Oyo State Governor, Engr. Seyi Makinde. Senior government officials, development partners, and private sector leaders are also expected to attend, signalling the strategic importance of the project.
The SAPZ initiative is one of AfDB’s flagship programmes under its Feed Africa strategy, which aims to revolutionise agriculture across the continent. By focusing on agro-industrialisation, the programme seeks to unlock greater market access for farmers, encourage large-scale private sector participation, and drive economic development in rural communities.
This will be the third SAPZ groundbreaking in Nigeria under Phase I of the programme, but it is the first in the country’s southwest region. The earlier launches in Kaduna and Cross River States, held in April 2025, set the tone for a nationwide roll-out that promises regionally balanced agro-industrial growth.
Phase I of the Nigeria SAPZ Programme spans seven states, Kaduna, Cross River, Oyo, Ogun, Kwara, Kano, and Imo, alongside the Federal Capital Territory (FCT). With a total financing package of $538 million, the initiative is co-funded by the African Development Bank, the Islamic Development Bank, and the International Fund for Agricultural Development, supported by contributions from both federal and state governments.
Oyo State is particularly well positioned to benefit from this investment. Home to nearly eight million people and covering the largest landmass in southern Nigeria, the state boasts over 90% arable land within its 28,454 square kilometres. Its proximity to Lagos, Africa’s largest city and subnational economy, makes Oyo a natural hub for agricultural trade, processing, and distribution.
The 300-hectare SAPZ site in Ijaiye lies just 29 kilometres from Ibadan, the state capital. It is strategically linked to modern infrastructure, including the Chief Obafemi Awolowo Railway Station (16 km away) and a newly upgraded road network connecting to the Samuel Ladoke Akintola Airport. The airport, currently being modernised into an international cargo hub, will further enhance Oyo’s ability to serve both domestic and export markets.
The new agro-industrial zone will build on Oyo State’s comparative advantages in crops such as cassava, maize, soybeans, and horticultural products, as well as its strong poultry sector. In parallel, the state government is developing a 2,800-hectare agribusiness hub in Eruwa. This site, which includes an Agricultural Transformation Centre (ATC), will provide shared infrastructure and services for smallholder farmers and young agripreneurs. Both projects are backed by a $37 million financing package from AfDB.
The upcoming launch in Oyo is not just about infrastructure but also about creating inclusive opportunities for rural communities, improving value chains, and positioning Nigeria as a key player in global agricultural markets. As the Federal Government and AfDB prepare for Phase II of the SAPZ programme, the momentum continues to build. Phase II is expected to extend to 24 additional states, with the initiative already attracting $2.2 billion in investment commitments at the Africa Investment Forum in December 2024.
The Oyo SAPZ is therefore more than a regional development project, it is part of a wider national strategy to modernise agriculture, generate jobs, and drive sustainable economic growth across Nigeria.
