Nigeria is losing an estimated 30–40% of food produced after harvest, highlighting major weaknesses in the country’s storage, processing and distribution systems.

The Nigerian Economic Summit Group (NESG) says inadequate processing facilities, poor storage infrastructure and limited cold-chain systems are preventing farmers from getting the full economic value of their produce.

The issue will feature prominently at the 32nd Nigerian Economic Summit (NES #32), scheduled for October 26–27, 2026, in Abuja.

Nigeria needs stronger agricultural value chains

The NESG is advocating for greater agro-industrialisation to increase agricultural productivity, create jobs and strengthen food security.

While agriculture employs about 36% of Nigeria’s labour force, the sector continues to operate below its potential. Many smallholder farmers still face limited access to certified inputs, mechanisation and extension services.

However, the NESG says simply increasing farm production will not be enough.

Nigeria also needs investment in processing plants, warehouses, cold-chain infrastructure and distribution networks that connect farmers to consumers and industrial buyers.

“Post-harvest losses are estimated at between 30 and 40 percent for many food commodities,” the group said, describing the losses as a major destruction of economic value.

Agro-processing could unlock new opportunities

The NESG identified cassava, rice, cocoa, sesame and soya among commodities with significant potential for higher-value exports if more processing takes place locally.

Processing agricultural products within Nigeria could help reduce food losses while creating manufacturing and logistics jobs.

It could also reduce dependence on imported finished products and allow Nigerian farmers and businesses to capture a larger share of the value generated along agricultural supply chains.

The broader challenge, according to the NESG, is to move Nigeria away from exporting raw commodities while importing finished products.

Financing remains a major obstacle

The group also highlighted the shortage of long-term financing as a major barrier to agricultural processing and industrial development.

Agro-processing facilities, manufacturing plants and industrial infrastructure often require substantial investment before they generate returns. However, capital has traditionally favoured sectors with faster payback periods and greater liquidity.

The NESG is calling for greater use of development finance, blended finance and risk-sharing mechanisms to attract investment into productive sectors.

Technology can improve agricultural productivity

Technology will also form part of the industrialisation discussions.

The NESG believes precision agriculture, digital logistics and digital payment systems can help farmers improve productivity and connect more efficiently with markets.

For example, digital platforms can link producers with processors and buyers, while precision farming technologies can help farmers use inputs more efficiently.

The organisation says Nigeria must move these technologies beyond the urban technology ecosystem and into agriculture, manufacturing and logistics.

Turning Nigeria into a value-added economy

The NESG argues that Nigeria has the land, labour force, natural resources and large consumer market needed to become a stronger productive economy.

But continued dependence on raw-material exports limits domestic value creation and leaves the economy vulnerable to international commodity price changes.

The Produce Nigeria session at NES #32 will bring together farmers, manufacturers, agro-industrialists, investors, policymakers and innovators to explore ways to strengthen agricultural value chains and attract investment.

The central challenge is to transform Nigeria from a primary producer into a high-value industrial and agricultural economy where more jobs and economic value are created locally.