Lagos food economy now N16.14trn annually – Sanwo-Olu

Lagos State Governor, Babajide Sanwo-Olu, yesterday declared Lagos as ‘Nigeria’s largest food market’, consuming over 50% of the food traded in the Southwest, with a food economy currently valued at N16.14 trillion annually. This is even as he inaugurated the N500 billion ‘Produce for Lagos’ program, aimed at boosting agricultural production in Lagos State for […]

Lagos State Governor, Babajide Sanwo-Olu, yesterday declared Lagos as ‘Nigeria’s largest food market’, consuming over 50% of the food traded in the Southwest, with a food economy currently valued at N16.14 trillion annually.

This is even as he inaugurated the N500 billion ‘Produce for Lagos’ program, aimed at boosting agricultural production in Lagos State for food security.

The initiative will enhance food affordability and accessibility through development with the private sector, addressing internal and uncoordinated food distribution into the state.

As food producing states, the Governors of Niger, Taraba, Kogi, Ogun states, and others joined Governor Sanwo-Olu to strengthen ties on the food production initiative.

The Chairman of the United Bank for Africa (UBA), Tony Elumelu, supported the N500 billion ‘Produce for Lagos’ program with N25 billion.

In his remarks, Sanwo-Olu described the launch as a watershed moment in his commitment to achieving food security, inclusive prosperity, and sustainable growth not just for Lagos State but for Nigeria.

He said his government when it came on board in 2019 had initiated a comprehensive

investigation on food flows and consumption patterns in Lagos.

“That research revealed what many of us already knew but had never quantified: Lagos is Nigeria’s largest food market, consuming over 50% of the food traded in the Southwest, with a food economy then valued at N6.5 trillion annually and which today stands at N16.14 trillion,” Sanwo-Olu said.

 

 ‘50% of Lagos food lost to poor storage’

He also disclosed that the outcome also revealed that “Lagos loses nearly 50% of its food between harvest and the market, largely due to poor storage and inefficient transportation.”

According to him, it became clear that we must transform our food system to

ensure that Lagos can feed its people sustainably, both now and in the future.

He said the move led the state to the launch, in 2021, of the Lagos State Agricultural and Food Systems Roadmap, a plan for addressing structural weaknesses within the food system, particularly post-harvest losses, poor logistics, and supply chain gaps.

vernor identified the ‘Produce for Lagos’ Program as the next logical step in our roadmap.

“The program will provide guaranteed offtake contracts, financing access, and logistics support, connecting us all directly with Lagos’s dynamic food economy. It will boost agricultural production and reduce reliance on informal and uncoordinated supply channels, create jobs for our youth and increase economic returns for all ecosystem stakeholders,” he said.

He said the programme will be implemented through the Lagos Food Systems Infrastructure Company (LAFSINCO), and supported by key Special Purpose Vehicles like the Lagos Bulk Trading Company, Ekolog (Eko Logistics), and the Produce for Lagos Fund.

“This N500 Billion Offtake Guarantee Fund will provide working capital for bulk traders, finance for logistics operators, liquidity for aggregators, and credit support for

food producers across Nigeria. It is a demonstration of our understanding that our food economy cannot thrive on policy alone – it requires financing.

“This fund is not a subsidy, it is an investment vehicle that will catalyze private capital, stabilize food prices, and de-risk agricultural operations across the value chain,” the governor said.

In the area of infrastructure, he said the government will be deploying a fleet of 150 cold and dry trucks, the largest of its kind, in partnership with the private sector.

“And we are not done yet. In the coming months, leading up to December, we will roll out a series of activities that will culminate in the commissioning of our state-of-the-art Food and Logistics Hub in Epe,” he said.

He hinted that Lagos is forging structured partnerships with Benue, Kogi, Niger, Oyo, Ogun, Taraba, aiming to seamlessly link the nation’s major production zones with its “largest and most dynamic consumption centre – LAGOS STATE!

 

Elumelu supports initiative with N25bn 

Elumelu announced a pledge of N25bn for the initiative, becoming the single largest financial contribution from the private sector to the initiative, which is aimed at enhancing food security, addressing supply chain inefficiencies, and improving access to agricultural produce across Lagos State.

The Heirs Holdings Chairman emphasized that the initiative could significantly reduce youth unemployment by engaging young people in productive agricultural ventures across the state’s arable lands.

“This initiative will tackle the root causes of joblessness. Agriculture has the power to employ millions—if we invest the right way,” Elumelu said. 

He added, “We at Heirs Holdings are committing N25 billion to support this food systems transformation. We will work hand-in-hand with the Lagos State Government to scale its impact by creating jobs.”