Lagos Govt Activates N500bn Food Security Fund

Lagos State government on Friday said it has concluded plans to commission the first phase of what it described as the largest food logistics hub in Sub-Saharan Africa, saying it has activated a N500 billion Offtake Guarantee Fund to tackle food supply disruptions and stabilise food prices across the state.

The state’s commissioner for Agriculture and Food Systems, Abisola Olusanya, disclosed this during the 2026 Ministerial Press Briefing held in 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 designed to transform food transportation, storage, processing and distribution within Lagos.

According to her, the project will serve as a major gateway for food distribution in the state, with the capacity to accommodate more than 1,500 trucks daily and handle over 1.5 million metric tonnes of food annually.

She explained that the hub will feature cold and dry storage facilities, 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 noted that Lagos, regarded as the nation’s largest food market, has continued to grapple with supply chain disruptions, rising transportation costs, poor storage infrastructure and huge post-harvest losses due to its heavy dependence on food supplies from outside the state.

“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.

The commissioner stated that the hub is expected to improve food aggregation, reduce waste, lower logistics costs and support more stable food prices across the state.

She added that the project would also generate employment opportunities in transportation, warehousing, cold-chain systems, 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.

According to her, the fund is designed to de-risk agricultural investments and provide guaranteed 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 stated.