FG to reduce post-harvest losses with introduction of agribusiness hubs
The Federal Government says strategically positioned Agribusiness Industrial Hubs can significantly reduce post-harvest losses for farmers, drive value addition, and enhance national economic growth.
Speaking at the groundbreaking of the Atan-Ijaiye Agribusiness Industrial Hub in Akinyele Local Government, Vice-President Kashim Shettima, represented by the Minister of Agriculture and Food Security, Dr. Abubakar Kyari, commended the Oyo State Government for aligning with the Renewed Hope Agenda by investing in agricultural transformation.
The initiative, developed in partnership with the African Development Bank (AfDB), the International Fund for Agricultural Development (IFAD), and the Islamic Development Bank (IsDB), aims to leverage global expertise, financing, and best practices for sustainable growth and social inclusion.
According to the Vice-President, the hubs are more than infrastructure—they represent a national commitment to turn Nigeria’s abundant agricultural resources into value-added products that can fuel industries, create jobs, and lift rural farmers out of poverty.
Governor Seyi Makinde disclosed that the hubs, located in Fasola, Eruwa, and Atan-Ijaiye, will directly and indirectly employ over 100,000 people while supporting the livelihoods of more than 500,000 farmers across the value chain. He added that six farm settlements have been identified for transformation, with three more—Ilora, Iresa Adu, and Ipapo—earmarked for future development.
The President of AfDB, Dr. Akinwumi Adesina, who conceived the hub concept during his tenure as Minister of Agriculture, described its implementation as a milestone for Nigeria’s agricultural future, with the potential to reposition the economy and create significant employment opportunities.
Source: Tribune Online
Expert Review for Agri-Food Stakeholders
Oyo State’s Agribusiness Industrial Hubs combine infrastructure, policy, and partnerships into a single model that can address multiple challenges in Nigeria’s agricultural economy. They offer lessons in scaling farmer inclusion, reducing losses, and building integrated agro-industrial systems.
Here are the key implications for stakeholders:
- Post-Harvest Loss Reduction
Post-harvest losses—estimated at 30–40% of total crop output in Nigeria—remain one of the biggest barriers to food security and farmer income. These hubs will integrate modern storage facilities, cold chain solutions, and processing plants close to production zones, reducing perishability and wastage. This not only preserves quality and increases marketable volumes but also stabilizes prices for farmers by reducing glut-induced price drops. - Employment Generation at Scale
With over 100,000 projected direct and indirect jobs, the hubs will serve as employment magnets for rural youth and women. Beyond farm labor, jobs will emerge in logistics, quality control, packaging, machine operation, input supply, and retail. This employment diversification will reduce rural-to-urban migration and support balanced regional development. - Market Access and Farmer Empowerment
The inclusion of over 500,000 farmers means smallholders will be connected to structured value chains where their produce is aggregated, processed, and marketed in bulk. This approach enhances bargaining power, reduces dependence on informal middlemen, and opens access to urban and export markets. It also increases farmers’ eligibility for finance, as structured hubs improve traceability and creditworthiness. - Leveraging International Partnerships for Technology and Capital
The partnership with AfDB, IFAD, and IsDB ensures the hubs benefit from global best practices in agri-processing, renewable energy integration, and sustainable farming techniques. These institutions also bring capital investment that reduces the state’s fiscal burden while encouraging private sector participation. Such partnerships improve scalability and sustainability. - Rural Transformation and Infrastructure Linkages
The hubs are designed to act as economic anchors for surrounding communities. They will attract complementary businesses such as feed mills, equipment maintenance workshops, and agro-logistics firms. Additionally, the need to move goods efficiently will justify investments in feeder roads, electricity, water supply, and ICT infrastructure—further enhancing rural living standards and economic activity.
Conclusion:
The Agribusiness Industrial Hubs in Oyo State are not just agricultural projects; they are rural economic engines. By combining processing, storage, market access, and global partnerships, they create a blueprint for inclusive and profitable agricultural transformation. For agri-food stakeholders, this model offers both a roadmap for replicable development and an investment-ready opportunity to plug into Nigeria’s evolving agro-industrial landscape.
