NESG Targets Agro-Processing Investment to Cut 30-40% Post-Harvest Losses

The Nigerian Economic Summit Group (NESG) is pushing for more investment in agro-processing, storage and cold-chain infrastructure to cut post-harvest losses it estimates at 30 to 40 per cent for several food commodities. The group says tackling those losses could unlock billions of naira in agricultural value, lift farmers' incomes, create jobs and reduce Nigeria's reliance on imported food and industrial products.

Agriculture remains one of the main pillars of the economy and employs about 36 per cent of the country's labour force. But inadequate storage, limited processing capacity, weak transport networks and a near absence of cold-chain infrastructure outside major urban centres keep eroding the value of farm output.

Summit to Take Up the Issue

The matter will feature prominently at the 32nd Nigerian Economic Summit, scheduled for October 26 and 27, 2026, at the Transcorp Hilton Hotel, Abuja. The summit carries the theme "Growth that Works: Delivering Jobs, Productivity and Shared Prosperity" and will examine the challenge under its "Produce Nigeria" track.

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

The NESG said post-harvest losses deprive farmers and the wider economy of billions of naira every year. The damage is worst during peak harvest periods, when farmers are forced to sell quickly at low prices because they lack storage or nearby processing facilities. Perishables such as fruits, vegetables and some animal-based products are especially exposed to spoilage before they reach consumers.

Why the Losses Matter Beyond the Farm

The fallout spreads well past the farm gate. Reduced market supply can push up food prices, while manufacturers that depend on agricultural inputs face shortages and higher production costs.

The NESG argues that investment in agro-processing would help Nigeria retain more value at home. Processing plants close to farming communities would let producers convert raw commodities into flour, starch, oil, animal feed, packaged foods and industrial inputs. They would also generate demand for transport, packaging, equipment maintenance, warehousing and financial services.

Cocoa, cassava, rice, sesame and soya are among the commodities with strong potential for higher-value processing and export development. Expanding cassava processing, for instance, could support production of starch, ethanol and animal feed. Better rice milling and packaging capacity could lift the competitiveness of locally grown rice.

Infrastructure and Finance Gap

The NESG said agro-industrialisation needs more than processing plants. Investors also require reliable electricity, accessible roads, efficient logistics, secure land arrangements and predictable regulation. Storage and cold-chain systems are essential to preserve perishables and let farmers sell when market conditions favour them.

Financing remains a stubborn hurdle. Agro-processing businesses often struggle to secure long-term, affordable credit. Banks have traditionally favoured activities with faster returns, while processing and industrial projects can take years to reach full capacity. The summit will consider development-finance instruments, blended-finance structures, credit guarantees and other risk-sharing mechanisms to draw private capital into the sector.

The NESG is also expected to look at how government incentives can support value-added production without opening the door to abuse or subsidy dependence. Digital platforms could connect farmers to processors and buyers, provide market information, improve supply chain payments and support traceability. Technology can also help with inventory management, route planning, crop monitoring and coordination of storage and transport. The challenge is making sure those tools reach smallholder farmers and rural businesses, not just the big cities. That will require wider broadband access, digital literacy, affordable devices and financing for small firms.

For Nigerian businesses and consumers, the stakes are clear. Fewer losses mean steadier food supply and less pressure on prices. More processing capacity means local manufacturers get inputs closer to home. The NESG believes the success of the Produce Nigeria agenda will depend on implementing agreed reforms and sustaining public and private investment in the infrastructure needed to preserve and process agricultural output.