As much as 50% of Nigeria’s harvests is lost before reaching consumers, thanks to inadequate storage, poor transport and a lack of processing and cold-chain infrastructure.
These losses amount to ₦3.5 trillion annually, surpassing the country’s five-year federal agricultural budget allocation.
Recently, the federal government has urged stakeholders to prioritise domestic agro-processing, which holds more significance than exporting raw commodities.
The impacts of these losses are broad. They translate into lost income for farmers, worsening food insecurity and deepening inflation for consumers. These diminish agriculture’s contribution to national economic growth.
Agro-processing reverses the trend by processing raw produce into long-lasting alternatives—fresh tomatoes into paste and cassava into flour or garri, for example—thereby multiplying the value captured locally.
This provides economic gains: higher prices for finished goods and longer-term storage, which help stabilise supply and price. It also creates jobs in processing hubs and packaging plants, making agriculture a viable source of income for urban dwellers
Achieving this ideal requires improved access to appropriate-scale machinery, service centres or hire schemes.
Recognising this, the government recently launched a post-harvest systems transformation programme designed to modernise storage, processing, and value-chain infrastructure nationwide.
What agro-processing means for local value chain
Domestic processing offers plenty of benefits, including cheaper staple and perishable foods and less volatility. Steady demand for processed goods provides predictable revenue streams for farmers, reducing dependence on seasonal raw-commodity markets.
However, weak infrastructure poses a strong barrier. Cold-chain networks, refrigerated transport, rural roads, stable electricity and storage facilities are in short supply.
Many smallholder farmers lack access to capital, market information or processing technology. Cultural and policy inertia, including bureaucratic hurdles and underinvestment, have long hindered value-chain transformation.
To make the government’s vision real, scaling up public-private partnerships is essential. Investment in cold storage, silos, processing zones and rural infrastructure should be prioritised, while credit mechanisms and technical support must be made accessible for smallholder farmers and agro-entrepreneurs.
Amidst numerous intervention programmes, smallholders continue to suffer declining productivity and post-harvest losses.
Policies have rarely translated into accessible credit, functioning storage facilities, reliable mechanisation or real market power for rural farmers.
Value-addition should not be the preserve of large agribusiness but must involve everyone from smallholders to cooperatives.
Nigeria needs measurable and accountable policies that show visible progress in farmers’ incomes, strengthened rural systems and inclusive participation across the value chain.
Only real, on-the-ground transformation will unlock the food security and economic resilience it desperately needs.
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