Market News

 by Nse Anthony-Uko 

The Nigerian Economic Summit Group (NESG) is seeking increased investment in agro-processing, storage, and cold-chain infrastructure to reduce post-harvest losses, estimated at 30-40 per cent for several food commodities.

The group said tackling the losses could unlock billions of naira in agricultural value, improve farmers’ incomes, create jobs and reduce Nigeria’s dependence on imported food and industrial products.

The group noted that while agriculture remains one of the main pillars of Nigeria’s economy and employs about 36 per cent of the country’s labour force.

However, inadequate storage, limited processing capacity, weak transportation networks and the near absence of cold-chain infrastructure outside major urban centres continue to erode the value of farm output.

The issue will feature prominently at the 32nd Nigerian Economic Summit, scheduled for October 26 and 27, 2026, at the Transcorp Hilton Hotel, Abuja.

The summit, themed “Growth that Works: Delivering Jobs, Productivity and Shared Prosperity,” will examine the challenge under its “Produce Nigeria” track.

The track will bring together policymakers, farmers, agro-industrialists, manufacturers, investors and technology innovators to discuss how Nigeria can strengthen domestic value chains and move from exporting raw materials to producing higher-value goods.

The NESG said post-harvest losses for several food commodities were estimated at between 30 and 40 per cent, depriving farmers and the wider economy of billions of naira annually.

The losses are particularly damaging during peak harvest periods, when farmers are often forced to sell quickly at low prices due to a lack of storage or nearby processing facilities.

Perishable products such as fruits, vegetables and some animal-based products are especially vulnerable to spoilage before reaching consumers.

The impact extends beyond farmers. Reduced market supply can push up food prices, while manufacturers that depend on agricultural inputs face shortages and higher production costs.

Processing as solution

The NESG said investment in agro-processing could help Nigeria retain more value within the domestic economy.

Processing facilities located close to farming communities would enable producers to convert raw commodities into flour, starch, oil, animal feed, packaged foods and industrial inputs.

Such facilities would also create demand for transport, packaging, equipment maintenance, warehousing and financial services.

The development of integrated value chains could help Nigeria build stronger links between farmers, processors, distributors and consumers.

Cocoa, cassava, rice, sesame and soya are among the commodities with significant potential for higher-value processing and export development.

For instance, expanding cassava processing could support the production of starch, ethanol, animal feed and other industrial products. Improved rice milling and packaging capacity could also enhance the competitiveness of locally produced rice.

Infrastructure, finance needed

The NESG said agro-industrialisation would require more than the construction of processing plants.

Investors also need reliable electricity, accessible roads, efficient logistics, secure land arrangements and predictable regulations.

Storage facilities and cold-chain systems would be essential for preserving perishable products and enabling farmers to sell when market conditions are more favourable.

However, agro-processing businesses often struggle to secure long-term, affordable financing. Banks have traditionally preferred activities with faster returns, whereas processing and industrial projects may take years to reach full capacity.

The summit will therefore consider development-finance instruments, blended-finance structures, credit guarantees and other risk-sharing mechanisms to attract private capital to the sector.

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The NESG is also expected to examine how government incentives can support value-added production without creating opportunities for abuse or dependence on subsidies.

Technology can reduce waste

Digital technology could further improve the efficiency of agricultural value chains.

Digital platforms can connect farmers to processors and buyers, provide market information, improve supply chain payments, and support traceability.

Technology can also assist with inventory management, route planning, crop monitoring and the coordination of storage and transport services.

The challenge is to ensure that these innovations reach smallholder farmers and rural businesses rather than remaining concentrated in major cities.

This will require wider broadband access, digital literacy, affordable devices and financing for small businesses seeking to adopt new systems.

Beyond policy commitments

The NESG said the summit would seek practical measures for converting Nigeria’s agricultural potential into jobs, investment and economic growth.

Stakeholders are expected to focus on measurable actions, including expanding processing capacity, reducing logistics bottlenecks, improving access to finance and developing regional storage and cold-chain networks.

The group said reducing post-harvest losses would strengthen food security while helping Nigeria reduce imports and create a more competitive industrial base.

The central issue is whether the country can move beyond producing and exporting raw commodities to building value chains that support farmers, manufacturers and consumers.

The group believes that the success of the Produce Nigeria agenda will ultimately depend on the implementation of agreed reforms and the ability of public and private-sector actors to sustain investment in the infrastructure required to preserve and process agricultural output.