Sanwo-Olu launches ₦500bn offtake Guarantee Fund to boost food security

By Kazeem Ugbodaga

Lagos State Governor, Babajide Sanwo-Olu, unveiled the Produce for Lagos Programme and a ₦500 billion Offtake Guarantee Fund on Wednesday at Lagos House, Ikeja, aimed at strengthening food security, reducing reliance on food imports, and enhancing agricultural productivity across Nigeria.

The initiative reflects Lagos State’s commitment to sustainable growth and inclusive prosperity.

Governor Sanwo-Olu highlighted Lagos’s role as Nigeria’s largest food market, accounting for over 50% of the South-West’s food trade with an economy valued at ₦16.14 trillion.

The programme is designed to provide guaranteed offtake contracts, access to financing, and logistics support, connecting farmers and producers directly to Lagos’s vibrant food market.

“This initiative is not a subsidy but a strategic investment to catalyze private capital, stabilize food prices, and de-risk agricultural operations across the value chain,” Sanwo-Olu stated.

“We are creating a resilient agricultural ecosystem that meets today’s demands and anticipates future needs through policy, financing, infrastructure, and data.”

The programme includes the deployment of 150 cold and dry trucks, the largest such fleet in Nigeria, in partnership with the private sector. Implementation will be driven by the Lagos Food Systems Infrastructure Company (LAFSINCO), supported by entities like the Lagos Bulk Trading Company, Ekolog (Eko Logistics), and the Produce for Lagos Fund.

The ₦500 billion fund will provide working capital for bulk traders, liquidity for aggregators, financing for logistics operators, and credit support for food producers nationwide.

Sanwo-Olu emphasized that the initiative would boost agricultural production, reduce dependence on informal supply chains, create jobs for youths, and increase economic returns for stakeholders.

He called on governors, financial institutions, farmers, and industry leaders to collaborate in building a sustainable food system for Nigeria.

“Let us rise together to feed this nation sustainably, secure our food future, and drive prosperity for our people,” he urged.

Governors Dapo Abiodun (Ogun), Mohammed Bago (Niger), Agbu Kefas (Taraba), and Usman Ododo (Kogi) praised the initiative and pledged their states’ partnership, leveraging their comparative advantages to enhance food security.

Ministers Bosun Tijani (Digital Economy), Idi Maiha (Livestock), and Doris Aniete (State for Finance) commended Lagos for its forward-thinking approach. General Christopher Musa, Chief of Defence Staff, affirmed the Armed Forces’ support, noting the programme’s potential to address hunger nationwide.

Lagos State Commissioner for Agriculture and Food Systems, Abisola Olusanya, explained that the initiative aims to centralize agricultural aggregation, reduce post-harvest losses, stabilize prices, and streamline urban food supply logistics.

She highlighted complementary programmes like the Lagos Innovation Club, Lagos Food Festival, Lagos Agriculture Scholars Programme, and Lagos Apprenticeship Programme, which support agricultural entrepreneurship and promote food culture.

Prince S. J. Samuel, Chairman of Origin Tech Group, underscored the private sector’s commitment to Lagos’s agricultural transformation and called for deeper public-private partnerships to ensure food security across Nigeria.