Nigeria Urged to Strengthen Agricultural Value Chains to Close Supply Gaps

Available in
Nigeria’s agricultural sector needs stronger links between farmers, processors, financiers, logistics providers and markets to build a more resilient domestic food production system, industry stakeholders have said.
The call was made at a Nigerian-British Chamber of Commerce agriculture advocacy roundtable in Lagos focused on unlocking the country’s agricultural supply chain and strengthening domestic production.
Stakeholders identified gaps in storage, transportation, processing, financing and market access as major constraints, but also highlighted them as investment opportunities capable of creating value and reducing food losses.
Lagos State Commissioner for Agriculture and Food Systems Abisola Olusanya said many of the sector’s challenges extend beyond farm production and are linked to businesses and supply chains that have not yet achieved sufficient scale.
She said production, finance, processing and distribution needed to operate as an integrated system, noting that farmers could have the capacity to produce while consumers and markets have demand, yet poor coordination can prevent commodities from reaching buyers efficiently.
Aggregation, quality control, financing, transportation, storage, post-harvest management and organised markets all need to work together, she said.
Olusanya pointed to Lagos State’s Produce for Lagos initiative as an example of efforts to connect major production areas with large consumption centres. She said the model demonstrated that moving food between states requires more than transportation, as farmers need to be organised, produce aggregated and standardised, transactions financed and markets prepared to receive supplies.
The Nigerian-British Chamber of Commerce President Abimbola Olashore said building a resilient food system required greater attention to the efficiency of the entire agricultural supply chain.
He called for increased investment in storage, processing, transportation and cold-chain infrastructure, alongside stronger collaboration between farmers, financial institutions, technology companies, logistics providers and markets.
Digital platforms, data systems, mechanisation, climate-smart farming and traceability were also identified as tools that could help address structural inefficiencies and improve the movement of agricultural products.
The Nigeria Export-Import Bank (NEXIM) said inadequate storage, cold-chain facilities and rural transport infrastructure continue to constrain agricultural productivity and value addition.
NEXIM Managing Director Abubakar Bello, represented at the event by Assistant General Manager Daniella Jarikre-Ikazoboh, said limited processing capacity meant that significant volumes of agricultural commodities continued to be traded or exported in relatively raw forms.
The bank is supporting processing, packaging, warehousing and quality-control investments across value chains including cocoa, cashew, sesame, ginger and shea, he said.
Bello also called for greater development of special agro-industrial processing zones, cold-storage hubs and rural feeder roads through public-private partnerships.
He urged Nigeria and the United Kingdom to deepen cooperation in agricultural technology, greenfield investment and trade, while encouraging lenders and development partners to expand blended financing for farmers and processors.
Nigeria’s revenue authorities are also implementing reforms intended to support agricultural investment. Nigeria Revenue Service Senior Manager Babatunde Odunayo said qualifying agricultural businesses involved in crop production, livestock and primary agro-processing could benefit from applicable tax incentives, including an initial five-year tax exemption and capital allowance provisions.
The broader message from the roundtable was that improving Nigeria’s food system will require investment beyond the farm gate. Better connections between producers and the infrastructure, finance and markets surrounding them could help reduce post-harvest losses, improve food availability and create greater opportunities for domestic processing and agricultural exports.











