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Can Lagos’ N500bn food investment fix Nigeria’s broken food chain?

Ijeoma Clare
4 Min Read

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\As food inflation soars to 21.97% and scarcity deepens, Nigeria in 2025 is facing one of its most severe food crises in recent memory. In 2025, an estimated 33 million are projected to be affected by food insecurity.

Across the country, food prices have surged owing to widespread insecurity in farming regions, poor logistics, high transportation costs, and a declining naira.

Already 26.5% of Nigerians—over 18 million people—are experiencing moderate to severe hunger, according to data from the National Bureau of Statistics.

In response, Lagos State has launched a new initiative, “Produce for Lagos,” a N500 billion programme to transform the food supply system. Lagos, which consumes over half of the food traded in the Southwest, now has a food economy valued at N16.14 trillion annually. 

This makes it Nigeria’s largest food market and the most vulnerable to supply shocks.

The new program seeks to reposition Lagos as not just a consumer but a central player in Nigeria’s agricultural value chain. It aims to create structured partnerships with food-producing states, coordinate distribution channels, and eliminate the inefficiencies that drive waste and price hikes. 

If executed effectively, this strategy will not only protect Lagos from future shocks but also set a precedent for other states to model integrated food networks.

Private sector support has added momentum to the project. Notably, Business mogul Tony Elumelu has pledged N25 billion, the largest private contribution yet.

Engagement with the private sector  is expected to drive innovation, accountability, and sustainability to ensure long-term impact.

Tackling Lagos’ post-harvest problem

A key motivation behind the initiative is the staggering post-harvest loss rate. Nearly 50% of food destined for Lagos is lost due to poor storage, bad roads, and fragmented transport systems. Cutting those losses could recover over N8 trillion worth of food annually.

The new strategy addresses gaps in previous agricultural policies such as the 2021 Agricultural and Food Systems Roadmap. These focused on reducing post-harvest losses and addressing systemic gaps. 

The ‘Produce for Lagos’ program offers off-take guarantees for producers, financing for logistics providers, credit support for farmers, and access to working capital for bulk food traders. 

Its integrated approach ensures that no part of the system is left behind, increasing the likelihood of systemic transformation.

To implement this, the state is establishing the Lagos Food Systems Infrastructure Company (LAFSINCO). The coordinating body will work with purpose-built vehicles like the Lagos Bulk Trading Company, Eko Logistics (Ekolog), and the Produce for Lagos Fund.  Designed for project tools, permanent engines of agricultural innovation, logistics planning, and market regulation.

These partnerships will link major production zones in states such as Niger, Taraba, Kogi, Ogun, Oyo, and Benue directly to Lagos’ markets. With this, Lagos aims to ensure a constant, structured inflow of food into the state, reducing dependency on informal and unreliable supply lines. 

If successful, this program could be a game-changer. It promises to create direct and indirect jobs, particularly for young people engaged in agriculture, logistics, aggregation, and trading. 

Beyond Lagos, the initiative could trigger a nationwide agricultural revival. By absorbing produce from multiple regions and reducing food waste, it sets a blueprint for sustainable urban food systems across Nigeria. 

As food becomes a cornerstone of national stability, Lagos’ N500 billion gamble may well mark the start of a new era where cities not only consume food but also invest in producing and protecting it.

Nigeria is confronting a severe food crisis in 2025 as food inflation reaches 21.97% and food insecurity threatens 33 million people. The crisis is amplified by increased food prices due to insecurity in farming regions, inefficient logistics, high transportation costs, and the depreciation of the naira. In response, Lagos State has launched a "Produce for Lagos" initiative worth N500 billion to improve the food supply system, repositioning Lagos from a major consumer to a central player in agriculture. The program focuses on structured partnerships with food-producing states, revamping distribution channels, and addressing inefficiencies leading to waste and price hikes.

One significant motivation is to tackle post-harvest losses, with nearly 50% of food meant for Lagos wasted due to poor storage and transport. The initiative includes off-take guarantees for producers, logistical support, credit to farmers, and working capital access for traders, facilitated by the Lagos Food Systems Infrastructure Company and other entities. This aims to secure a steady food inflow, reduce reliance on informal supply lines, and potentially create various employment opportunities. If successful, this could inspire a nationwide agricultural revival and set a benchmark for sustainable urban food systems in Nigeria.

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