ABUJA, Nigeria (BG) – Nigeria’s government and the African Development Bank (AfDB)have launched the first phase of a $538 million project to boost food production and create jobs across eight states.

The groundbreaking ceremony took place on Tuesday in Kaduna State, attended by AfDB President Akinwumi Adesina, Vice President Kashim Shettima, and Kaduna Governor Uba Sani.

A second ceremony is planned in Cross River state, led by federal officials and Gov. Bassey Edet Otu, AfDB said in a media release on Tuesday.

The Special Agro-Industrial Processing Zones program aims to reduce food imports, create jobs for young people, and boost agricultural exports.

The program has the potential to create more than 60,000 jobs in each of the pioneering states, according to the AfDB.

The first phase includes Kaduna, Kano, Kwara, Cross River, Imo, Ogun, Oyo, and the Federal Capital Territory.

The project launched in 2022 with $210 million from the AfDB, supported by the Islamic Development Bank, the International Fund for Agricultural Development, and private sector partners.

Officials said the program could increase agricultural productivity by more than 60%, reduce post-harvest losses, and strengthen the farm-to-market supply chain.

Agro-Industrial Hubs, Agricultural Transformation Centers, and Aggregation Centers will be built in each state.

Kaduna state will focus on maize, soybeans, ginger, and tomatoes.

Cross River State will focus on cocoa, cassava, and rice. Sites were chosen based on agricultural potential, infrastructure, and proximity to universities to support research and innovation.

Other governors, federal officials, and development partners also attended the ceremonies.

About 37% of the Bank’s $5.1 billion portfolio in Nigeria is dedicated to private sector development.

Last year, Nigeria spent $4.7 billion on food imports. Officials said the new initiative is expected to help reverse that trend.