Lagos To Commission Food Hub, Activates ₦500bn Offtake Fund

The Lagos State Government said it has concluded plans to commission the first phase of what it describes as the largest food logistics hub in Sub-Saharan Africa, while also activating a ₦500 billion Offtake Guarantee Fund aimed at stabilising food supply and prices across the state.

The Commissioner for Agriculture and Food Systems, Abisola Olusanya, disclosed this on Friday during the 2026 Ministerial Press Briefing held at the Bagauda Kaltho Press Centre, Alausa, Ikeja.

Olusanya said the Lagos Central Food Systems and Logistics Hub, located in Ketu-Ereyun, Epe, is being developed as a modern, technology-driven facility to transform food transportation, storage, processing, and distribution within the state.

She explained that the hub is designed to serve as a major distribution gateway, with the capacity to handle more than 1,500 trucks daily and process over 1.5 million metric tonnes of food annually.

According to her, the facility will include cold and dry storage units, warehouses, processing and repackaging centres, aggregation points, truck parks, quality control laboratories, and digital trading platforms to improve efficiency across the food value chain.

Olusanya said Lagos, as Nigeria’s largest food market, continues to face supply chain disruptions, high transportation costs, inadequate storage infrastructure, and significant post-harvest losses due to its reliance on food inflows from other states.

“Today, I am pleased to inform you that the first phase of the Lagos Central Food Security Systems and Logistics Hub is scheduled for commissioning this year.

“This will mark a major turning point in Lagos State’s food systems transformation journey and demonstrate that Lagos is responding to food security challenges through long-term infrastructure,” she said.

She added that the hub is expected to improve food aggregation, reduce waste, lower logistics costs, and contribute to more stable food prices across the state.

The commissioner also said the project would create jobs across transportation, warehousing, cold-chain logistics, food processing, packaging, retail, food safety, and technology services.

Olusanya further disclosed that the state had activated a ₦500 billion Offtake Guarantee Fund under its “Produce for Lagos” initiative to strengthen food production, aggregation, logistics, financing, and distribution systems.

She said the fund is designed to de-risk agricultural investments and guarantee market access for farmers, aggregators, processors, logistics operators, and investors.

“At the centre of this initiative is the ₦500 billion Offtake Guarantee Fund. This fund is designed to de-risk agricultural investment and build confidence among farmers, producers, processors, aggregators, logistics operators, financiers and investors,” she said.

She added that one of the major constraints in Nigeria’s agricultural sector is uncertainty around market access, which often discourages production and private sector investment.