Business Briefings
Nigeria loses 50% of food produced in Lagos– Stakeholders push for large-scale farming
By: Amarachi Okonkwo
Nigeria may be losing as much as 50 per cent of the food produced in Lagos before it reaches consumers, a situation stakeholders say underscores the urgent need for large-scale commercial farming and improved supply chains to address the country’s deepening food security concerns.
The disclosure was made in Lagos during the unveiling of a corporate farming initiative designed to strengthen agricultural production, reduce post-harvest losses and improve food distribution across Nigeria.
Participants at the event, drawn from government, agribusiness, banking and farming communities, said Nigeria must move away from its fragmented smallholder farming system and embrace coordinated commercial farming models capable of improving productivity and ensuring stable food supply.
At the gathering, Origin Tech Group introduced its Corporate Farm Model, a platform aimed at supporting large-scale farming through structured financing, professional farm management and guaranteed market access for agricultural produce.
Executive Chairman of the company, Prince Samuel, said inefficiencies across Nigeria’s agricultural supply chain are responsible for massive food losses.
According to him, a significant proportion of food produced never gets to consumers due to poor logistics, inadequate storage infrastructure and weak distribution networks.
“About 50 per cent of the food produced in Lagos never gets to consumers due to inefficiencies in the supply chain,” Samuel said.
He explained that the corporate farming model was developed to address long-standing risks that have discouraged investors from participating in agriculture.
Samuel noted that many financial institutions previously suffered losses after financing agricultural projects that lacked technical expertise, structured management and guaranteed off-take markets.
Under the initiative, investors will be provided with farmland, professional farm management services, financing support and guaranteed off-take arrangements for agricultural produce.
He disclosed that each farm under the model will operate on a minimum of 1,000 hectares, with investors contributing between 20 and 30 per cent equity, while the remaining funding will be sourced from financial institutions and Origin Tech.
The programme will also provide farmers with technical support for two farming cycles and advisory services for up to five cycles to ensure sustainability and productivity.
Chief Operating Officer of Origin Automobile Works, Leo Edwards, highlighted Nigeria’s low level of agricultural mechanisation as a major constraint to productivity.
Citing data from the Food and Agriculture Organization (FAO), he noted that the global benchmark for mechanised farming stands at 1.5 horsepower per hectare, while Nigeria currently operates at just 0.0027 horsepower per hectare, indicating a significant technology gap.
Also speaking at the event, the Lagos State Commissioner for Agriculture and Food Systems, Abisola Olusanya, said Nigeria’s agricultural framework must evolve to tackle persistent food losses and supply shortages.
Olusanya stressed that improving agricultural infrastructure, mechanisation and coordinated production systems would be critical to strengthening food security and reducing the country’s dependence on food imports.
Stakeholders at the event agreed that adopting commercial farming models backed by technology, financing and market guarantees could significantly reduce food losses, attract private investment and improve Nigeria’s agricultural productivity.
