Lagos State Government Plans Colossal Food Logistics Hub

The Lagos State government has put plans in motion to establish the largest food logistics hub in sub-Saharan Africa. The governor, Mr Babajide Sanwo-Olu, announced this at the grand finale of the 2023 World Food Day celebration in Lagos. He said that the first stage of the project is due for completion next year, with the major aim of supporting food security in the State. The governor explained that it will be adequately equipped with state-of-the-art storage facilities to serve as a central repository for Lagos’ agricultural commodities. From there, food items will be transported to various notable markets all around the State, as well as retail markets and those at the last-mile on various street corners.

The ground-breaking ceremony for the facility, strategically located (for its proximity to farming communities) in Ketu-Ereyun between Epe and Ikorodu was done last year on a 1.2 million square metre site. It is expected to store at least 45,000 metric tonnes of produce and meet the daily requirements of thousands of actors in the agricultural value chain throughout the year. It will also ensure unbroken food supply to more than 10 million Lagosians for at least 3 months in lean times.

A food logistics hub is essential to the efficient management, storage and distribution of agro-products. It is a critical component of the value chain, linking producers of agricultural commodities (in this case, small holder farmers) to retailers, wholesalers and finally to consumers. Often times, processed/semi-processed foods are inclusive and even manufactured items (on rare occasions). The main idea is to streamline the movement of food items, ensuring their timely and safe delivery from source to destination. Key features and functions of a food logistics hub include: storage and warehousing; distribution and transportation; inventory management; trans-shipment; as well as quality control and compliance.

Some hubs offer additional services such as packaging, labeling and sorting to meet specific outbound/customer requirements. This adds value to the value chain and enhances the efficiency of food distribution. Modern facilities integrate information and advanced technological systems to manage the flow of goods, monitor inventory levels and provide real-time tracking information; generating critical data useful to private/public sector entities for planning and investment purposes.

The establishment of food logistics hubs is crucial in addressing challenges related to food distribution, especially in urban centres where demand is high. It optimizes the value chain by reducing waste, improving overall efficiency and ensuring that consumers have access to a diverse and fresh supply of products. An estimated $10 billion worth of food transactions is consummated annually in Lagos, where post-harvest losses can be as high as 40%.

The World Food Day is promoted by the United Nations Food and Agriculture Organization (FAO) to address food security challenges and celebrated every October 16. This year’s theme is: “Water is life, water is food. Leave no one behind”