Project rationale

Early Industrial development in Kaduna state as part of post-independence economic investment programmes in the Northern Region has seen her emerge as a leading industrial powerhouse of the region. Through deliberate government policy, significant investments by the Federal Government and the Commonwealth Development Corporation catalyzed the emergence of an industrial economy in Kaduna [Kaduna State Development Plan (KSDP) 2016-2020]. Substantial public resources, including federal resources, were expended in providing the necessary infrastructure, notably railway and roads, to industrial layouts that had been carved to serve cotton textile mills meant for the regional markets in West Africa. Despite this level of investment, the expected output is far from being achieved, as Kaduna State only has an average of 80 commercial and manufacturing industries (KSDP 2016-2020). Industrial performance remains poor with the contribution of manufacturing to state GDP abysmally low at less than 2 percent (NBS State GDP Report, 2016). It is in furtherance to the poor industrial performance and poor utilisation of the existing infrastructure investment and strategic positioning of Kaduna State, that the Green Agro-allied Industrial Zone has been conceived to boost the industrial potential of the Northern Nigerian region in a clean and environmentally friendly way.

Description of asset

Considering the investment environment, the economic development trend as well as the market demand of Nigeria, GAAIZ will give priority to manufacturing, warehousing & logistics as the leading industries in the Zone, and take urban services and real estate development as the supporting industries in a bid to achieve rational distribution of industries, markets, and the population. Thus, gradually turning GAAIZ into a new industrial city as well as a multi-functional special agro-allied economic zone of Kaduna, comprising industries, commerce, trade, finance, business, residential, recreation, culture, education, etc. The attractiveness of the agro industrial park has triggered commitment from various key actors. 

Description of services

The expected project outputs from the GAAIZ project are;

       i.         Development of Infrastructure (road, power, waste water treatment plant, High Speed Broadbandetc) for the Free Trade Zone.

      ii.         Provide enabling infrastructure for value chain development across the agriculture and mining sector

     iii.         Stimulate agricultural productivity in areas close to the Zone.

    iv.         Support the building of capacity and skills for agro-processing, beneficiation, and light manufacturing development in Kaduna

     v.         Facilitate Climate Smart investment in agriculture and other key sectors

    vi.         Provision of a Multi Model Logistic Park to address the longstanding logistic challenge in the region.

   vii.         promotion of a community of practice of product/service specific researchers, and the establishment of a Centre of Excellence for research and development, and

  viii.         Improvement in literacy, health, wellbeing, income level, and environmental consciousness of citizens.

Rationale for selection of PPP model

Information will be published as soon as it is available.

Estimated demand to be served annually

Information will be published as soon as it is available.

Indicative investment size

Based on initial assessment by consultants engaged to develop a feasibility report on the project, the Project is estimated to cost about $691.73 million (Hard Cost of $623.18 Million and Soft Cost of $68.55 Million). This fund will primarily be expended on infrastructure and development cost, as well as operational cost. This cost is in line with cost of development of similar zones in Ethopia (when scaled based on size); for instance Tigray (Western Tigray) project with a size of 258.62 Ha cost $232.83 Million,  Amhara (South West Amhara) with a total area of 260.35 Ha cost $227.58 Million, SNNP (Eastern SNNP) with a total area of 214.86 Ha cost $176.21, and Oromia – Central Eastern Oromia with a total area of 263 Ha cost $233.12 Million

Pre-feasibility study report

Information will be published as soon as it is available.