1.1. Background
In 2010 Nigeria was faced with critical challenges in food security occasioned by low productivity and production and sub-optimal harvested area. In addition, opportunities for jobs and wealth creation in rural areas through value addition to agricultural commodities had only been sparingly harnessed leading to high unemployment among rural populations. In response to these the Federal Government of Nigeria of rolled out its Agriculture Sector policy, Agricultural Transformation Agenda (ATA) 2011-2015 which was operationalized through AfDB financed Agricultural Transformation Agenda Support Programme – Phase 1 Project (ATASP-1) and other projects.
ATASP-1 aimed at transforming agriculture into a commercially viable and inclusive sector capable of driving rural development, reducing poverty, and enhancing food security. The program was implemented in four (4) out of the then twenty (20) planned Staple Crop Processing Zones (SCPZs) that had been identified in the country: Adani-Omor (in 7 LGAs Anambra and Enugu States), Bida-Badeggi (in 7 LGAs Niger State), Kano-Jigawa (in 11 LGAs Kano and Jigawa States), and Kebbi-Sokoto in 8 LGA in Kebbi and Sokoto States), which were selected based on their agricultural potential and strategic importance.
Upon completion of the project, more than 3 million jobs were generated across the rice, cassava, and sorghum value chains. Additionally, farmer incomes increased by 38%. It empowered more than 40,000 women and youths in agricultural enterprises, enhanced the productivity of rice from 1.8 to 6.56 mt/ha; sorghum from 1.0 to 2.12 mt/ha; and Cassava from 10 to 34.12 mt/ha.
1.2. Proposed ATASP-2 Intervention
The Agricultural Transformation Agenda Support Program – Phase II Project (ATASP-II) is a proposed follow-up to ATASP-1, which was implemented by the Federal Government of Nigeria (FGN) through the Federal Ministry of Agriculture and Food Security (FMAFS) with support from the African Development Bank (AfDB). The operation will be aligned with the FGN’s Renewed Hope Agenda and the Nigeria First Policy which were launched in 2023 and 2025 respectively.
It will consolidate the gains made by ATASP-1 and expand to other areas including locations in the North-East, South-South, and South-West geographical zones of the country, which did not participate in the earlier phase. It will be guided by the Federal Government’s efforts to drive agricultural transformation, stimulate economic diversification, and reduce poverty through agribusiness development. Agriculture, which is still a critical sector of Nigeria’s economy, contributing about 25% of the Gross Domestic Product (GDP) and employing over 70% of the rural labor force is still characterized with low agriculture sector productivity due to poor access to quality inputs (seeds and fertilizer), poor land tenure systems, low levels of irrigation farming, climate change, land degradation, and weak industrial value chains. Insurgency, armed banditry and perennial crop farmer-herder conflicts further impedes optimization of the country’s agricultural potential, making Nigeria a net importer of food.
ATASP-II is also informed by the National Economic Transformation Plan, which emphasizes infrastructure development, inclusive growth, and sectoral productivity. The program aligns with key components of Nigeria’s medium-term economic strategy, including food and nutrition security, access to rural infrastructure, and income generation. It will be aligned with African Development Bank’s Country Strategy Paper (2025-2030) which aims at supporting economic transformation to build resilience and broaden economic development for prosperity.
Specifically, ATASP-II will build on emerging opportunities arising from the establishment of State-based Special Agro-Industrial Processing Zones (SAPZs). The programme aims to enable smallholder farmers and other value chain actors to competitively integrate into the SAPZs by producing priority agricultural commodities for the zones. To achieve this, ATASP-II will support the provision of critical public production infrastructure, including irrigation schemes, rural access roads, and bulking and primary processing facilities. In addition, it will deliver complementary value chain services such as technology dissemination and extension, mechanization support, input supply systems, and business development services, all of which are designed to enhance productivity and promote competitive, market-oriented production.
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SAPZ is being implemented in Phases and Tranches in the following States:
On-going
(Phase 1) Approved in 12.2025
Phase 2 (Tranche 1) At Appraisal Stage
Phase 2 (Tranche 2) To be decided
Phase 2 (Tranche 3)
1 Kaduna Anambra Abia
2 Cross River Niger Akwa Ibom
3 Oyo Delta Bauchi
4 Ogun Plateau Jigawa
5 Imo Ekiti Yobe.
6 Kano Enugu Benue
7 Kwara Kebbi Ebonyi
8 FCT Borno Kogi
9 Gombe Nasarawa
10 Katsina Taraba
11 Zamfara
12 Ondo
The priority commodities identified for the respective SAPZs include Cereals (wheat, rice, maize, sorghum and millet); oilseeds and legumes (cowpea, soybeans, groundnuts, and sesame); roots and tubers (cassava, potato and yam); horticultural crops (tomato, ginger, onions etc.); industrial/tree crops (cocoa, oil palm and cotton); livestock (poultry, small and large ruminants); and fish (aquaculture). ATASP-2 is expected to be implemented for the duration of 5-year.
2.0 OBJECTIVE OF THE FEASIBILITY STUDY
The overall objective is to assess undertake i) a comprehensive review of the relevant feasibility studies provided by the respective states for SAPZ and other existing studies to select and validate respective value chain analysis, ii) identify relevant infrastructural gaps needed enhance productivity of the selected key value chains and iii) prepare preliminary designs for the identified infrastructure to inform the costing of ATASP-2.
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