In a significant step toward transforming Nigeria’s agricultural sector, the Federal Government has unveiled a series of Agribusiness Industrial Hubs in Oyo State to reduce post-harvest losses and enhance value addition in farming communities.
Vice-President Kashim Shettima, representing President Bola Ahmed Tinubu, commissioned the hubs during a flag-off ceremony in Fasola, with additional hubs planned for Eruwa and Atan-Ijaiye. These facilities are part of a broader initiative to modernize Nigeria’s agricultural landscape under the administration’s Renewed Hope Agenda.
A Strategic Shift in Agricultural Development
The newly introduced hubs will host over 40 agribusiness ventures, directly and indirectly creating employment for over 100,000 Nigerians and supporting the livelihoods of more than 500,000 farmers, ranging from peasant to medium-scale operators.
Vice-President Shettima described the initiative as a “watershed moment in the country’s economic diversification strategy,” emphasizing its potential to reduce the nation’s overreliance on food imports and improve food security.
“These agribusiness hubs will serve as catalytic centers for food processing, storage, and distribution. By reducing post-harvest losses which currently account for up to 40% of total agricultural output we are unlocking significant economic value and securing livelihoods for millions,” he stated.
Integrated National Program
The Oyo State pilot is part of the Federal Government’s wider Special Agro-Industrial Processing Zones (SAPZ) program, spearheaded in partnership with the African Development Bank (AfDB), International Fund for Agricultural Development (IFAD), and the Islamic Development Bank (IsDB).
Through the SAPZ program, the government plans to roll out processing and storage infrastructure in 28 states, targeting a reduction in post-harvest losses from 45% to 20%, while creating nearly 500,000 new jobs.
The AfDB has committed $2.2 billion toward the SAPZ rollout, aimed at bringing agro-processing facilities closer to farming clusters, thus minimizing waste and maximizing profit for local producers.
Technology and Research-Driven Support
In a complementary effort, institutions such as the Nigerian Stored Products Research Institute (NSPRI) have launched post-harvest facilities, including solar dryers, hermetic silos, and multi-crop storage units. A notable example is the recently commissioned hub at Rivers State University, developed in partnership with NSPRI, to tackle Nigeria’s estimated ₦3.5 trillion annual post-harvest losses.
These hubs will provide essential services such as drying, packaging, value addition, and cold chain storage for crops like cassava, maize, rice, and onions.
Looking Ahead
The federal government plans to expand the agribusiness hubs model beyond Oyo State, with similar projects in the pipeline across the country. Officials say the initiative will also open the door to increased private sector participation in agricultural value chains.
Stakeholders from across the agricultural spectrum including international donors, research institutions, and local entrepreneurs have hailed the initiative as a bold and necessary move to ensure sustainable agricultural growth.