Nigeria, AfDB Set to Break Ground on Oyo Agro-Industrial Hub to Boost Jobs, Food Security, and Rural Growth

The Federal Government of Nigeria, in partnership with the African Development Bank (AfDB), will officially break ground on the Oyo State Special Agro-Industrial Processing Zone (SAPZ) on August 2, marking a major milestone in the country’s push for agricultural industrialisation and rural economic transformation.

The ceremony will take place at the SAPZ Phase I site in Atan, Ijaiye, Akinyele LGA, Oyo State. According to a statement from the AfDB, the project is part of a broader strategy to strengthen food systems, create sustainable jobs, and drive rural industrialisation through modern agro-processing infrastructure.

The Oyo SAPZ is supported by the Oyo State Government, along with a coalition of global development partners, including the Islamic Development Bank (IsDB), International Fund for Agricultural Development (IFAD), and the Africa Grow Together Fund.

The high-profile groundbreaking event will feature AfDB President Akinwumi Adesina, top Nigerian government officials, and representatives of funding institutions, signalling strong political and institutional backing for agricultural transformation.

This development follows the successful launch of SAPZs in Kaduna and Cross River States earlier this year, positioning Oyo as the third location to activate its agro-industrial zone under Phase I of the national programme. It also marks the initiative’s expansion into Nigeria’s southwest region, reinforcing the country’s commitment to food self-sufficiency and inclusive rural development.

Strategically located on 300 hectares near the Lagos-Ibadan railway corridor, the site is primed for agricultural investment, offering direct access to transport and logistics networks. The Oyo SAPZ is expected to unlock high-potential value chains in cassava, maize, poultry, and horticulture, enhancing market access for smallholder farmers while attracting agro-investors.

The SAPZ initiative is a flagship under the AfDB’s Feed Africa High 5 agenda and represents the bank’s largest agricultural investment in Africa, with total financing of $538 million. It aims to transform underdeveloped rural areas into integrated agro-industrial hubs, linking production, processing, and distribution in a single ecosystem.

AfDB describes the SAPZ model as a blueprint for Africa’s agricultural transformation—one that combines infrastructure, public-private partnerships, and policy alignment to deliver inclusive growth, food security, and economic diversification.

For Nigeria, the Oyo SAPZ is more than an infrastructure project; it is a platform to reduce rural poverty, limit food imports, and demonstrate that agriculture can be a profitable engine of national development.

With over $11 billion in total commitments and a partnership with Nigeria spanning five decades, agriculture remains a key pillar of the AfDB’s support to the country—and this latest effort signals a new era of modern, large-scale agro-investment in West Africa.