Lagos launches ₦500 billion offtake guarantee fund to boost food security

July 24, 2025

By Ayinde Adeleke

Lagos State Governor, Babajide Sanwo-Olu, has launched the Produce for Lagos Programme and a ₦500 billion Offtake Guarantee Fund to enhance food security, reduce imports, and boost agricultural productivity across Nigeria.

The initiative aims to provide guaranteed off-take contracts, access to financing, and logistics support, connecting Lagosians directly with the state’s dynamic food economy.

Lagos is Nigeria’s largest food market, consuming over 50 percent of the food traded in the South-West with a food economy valued at ₦16.14 trillion.

“This ₦500 Billion Offtake Guarantee Fund will provide working capital for bulk traders, finance for logistics operators, liquidity for aggregators, and credit support for food producers across Nigeria. It is a demonstration of our understanding that our food economy cannot thrive on policy alone – it requires financing,” Governor Sanwo-Olu said.

The governor emphasized that the programme reflects his administration’s commitment to achieving food security, inclusive prosperity, and sustainable growth not just for Lagos State but for Nigeria.

He also announced the deployment of a fleet of 150 cold and dry trucks, the largest of its kind, in partnership with the private sector, to boost agricultural production and reduce reliance on informal supply channels.

The initiative will be implemented through the Lagos Food Systems Infrastructure Company (LAFSINCO) and supported by key Special Purpose Vehicles like the Lagos Bulk Trading Company, Ekolog (Eko Logistics), and the Produce for Lagos Fund.

“This fund is not a subsidy; it is an investment vehicle that will catalyse private capital, stabilise food prices, and de-risk agricultural operations across the value chain. What we are doing here is creating a whole new agricultural ecosystem, one that rises to meet the demands of today and of tomorrow—combining policy, financing, infrastructure, and data,” Sanwo-Olu added.

Governor Sanwo-Olu called on all state governors, financial institutions, development organisations, foreign missions, and diplomatic representatives from valued partner nations to produce for Lagos.

“Let us rise together to feed this nation sustainably. Let us collaborate across borders, build resilient infrastructure, support, and secure our food future not just for Lagos but for Nigeria. Let us lead, let us inspire, and let us grow for the prosperity of our people and the greatness of our country,” he said.

Several governors, including Dapo Abiodun of Ogun State, Mohammed Bago of Niger State, Agbu Kefas of Taraba, and Usman Ododo of Kogi, commended Sanwo-Olu for the bold initiative, expressing readiness to partner with Lagos State in boosting food security.

The Chief of Defence Staff, General Christopher Musa, expressed confidence in the initiative, stating that it would work well in addressing food security challenges in the state and pledged the Armed Forces of Nigeria’s support for the Produce for Lagos Programme.

The Lagos State Commissioner for Agriculture and Food Systems, Abisola Olusanya, said the initiative aims to centralise agricultural aggregation to cut post-harvest losses, stabilise food prices, and create an efficient urban food supply logistics system.

The private sector has also expressed commitment to the programme, with Prince S. J. Samuel, Chairman of Origin Tech Group, calling for more public-private partnerships to achieve food security in Lagos State and Nigeria.