Abia State Government has assured the African Development Bank (AfDB) of its readiness to co-finance critical infrastructure and meet all conditions required for inclusion in Tranche 2 of the Special Agro-Industrial Processing Zones (SAPZ) Programme.
Governor Alex Otti gave the assurance, on Monday when he received the AfDB pre-appraisal mission team, led by Bernard Onzima in his office at Nvosi Isialangwa South Local Government Area (LGA) of the State.
The SAPZ programme is one of AfDB’s largest engagements in Nigeria’s agriculture. It is designed to transform agriculture from subsistence farming into industrialised, value-added agribusiness, with the goals of improving food security, creating jobs and reducing food import dependence.
The AfDB SAPZ programme Tranche 2 will target eight States with a $200 million AfDB facility, and an expected $150 million co-financing package from the Islamic Development Bank.
If approved under Tranche 2, Abia’s inclusion, would mark a significant step in the State’s ambition to reposition agriculture, as a major driver of industrial growth and economic diversification.
Governor Otti also pledged that Abia would provide counterpart funding and complementary infrastructure, such as access roads and electricity to guarantee the success of the project.
He expressed appreciation to the AfDB for including Abia State among possible States to benefit under the Second Tranche of States, for the SAPZ programme after missing out in Tranche 1.
“I think to first of all say that we are happy to be included in the possible states to benefit from Tranch 2 of this project, having missed out in Tranche 1.
“We can assure you that the State is ready to co-finance and provide the necessary environment, including access roads and electricity, like you mentioned. So you wouldn’t have any problems.
“We’ll do everything possible to ensure that we benefit”, Governor Otti said.
The governor noted that as the team undertakes an inspection of the proposed agro-industrial hub in Ukwa West, the State also boasts several other viable agricultural locations, including Ukwa East, host to Abia Palm, as well as vast expanses of arable land across Ikwuano, Umuahia, Bende and Arochukwu.
“I’m happy that you have already visited the agro-industrial site in Ukwa West, but then there are still a lot of sites.
“There is the one in Ukwa East, and that would be Abia Palm, which I think we have a memorandum of understanding (MoU) that we have signed with an international company.
“But then beyond Ukwa, there is so much land in the northern part of the State, including the central, the Umuahia area, Ikwuano. So I would request that if you are still around, you may just want to go and see.
“There is the old farm settlement at Ulonna, and that’s around Bende. Then as you move towards Arochukwu, in Abam area there is the rubber plantation, all sorts of sites
“So that if we are considering giving the entire $200 million, then you can have a justification for it”, he stated.
Governor Otti, also used the opportunity to commend the AfDB for its support under the Abia State Integrated Infrastructure Development (ABSIID) Project and revealed that the State had recently paid its counterpart funding to accelerate its implementation.
He further expressed optimism about strengthening ties with the AfDB and its partners, including the Islamic Development Bank, which is expected to co-finance the programme.
Bernard Onzima, leader of the AfDB delegation, disclosed that the team was in Abia on a pre-appraisal mission for Phase 2 of the SAPZ programme, an initiative designed to address downstream agro-processing challenges and de-risk private investment in agriculture across Africa.
Onzima, explained that the SAPZ initiative, currently valued at over $1.2 billion across participating countries, adopts a multi-tranche financing model due to funding headroom constraints.
He noted that 27 States have expressed interest to participate in the Phase 2 of the programme.
According to him, Tranche 1, covering 10 States, received board approval in December 2025, while Tranche 2 will target 8-States with a $200 million AfDB facility, alongside an expected $150 million co-financing package from the Islamic Development Bank.
Onzima said that the mission was assessing readiness in the State in terms of site suitability, environmental and social safeguards compliance, financial management systems, procurement capacity and private sector engagement.
“We are assessing the readiness in terms of environmental and social safeguards studies. We are also assessing readiness in terms of engagement with the private sector, because we think that agro-industrial processing zones will be more sustainable when the public sector collaborates with the private sector for sustainability.
“So, the financing package for Tranch 2 will be $200 million from the AFDB for the 8-states that we are targeting, and we are expecting a co-financing of another $150 million from the Islamic Development Bank”, he said.
Onzima, who commended the proposed Ukwa West site as “a good site, which is unencumbered”, however, emphasised the need for the State Government to commit additional investments.
Cliff Agbaeze, commissioner for Agriculture, Abia State, stated that Ukwa West was selected due to its proximity to the Abia Innovation and Industrial Park (AIIP) and outlined plans to expand agro-processing activities across other Local Government Areas.
We choose Ukwa West, because of the advantage of the proposed site’s proximity to Abia Innovation and Industrial Park, because of the infrastructure that is going to be provided within that space,” he said.
Agbaeze said that the programme would strengthen the Agricultural value chain from production to export, including crops and livestock.
He revealed that the State’s agro-transformation strategy, would also extend to Bende, Ikwuano and other locations, covering mandated crops and also livestock development.
