Small businesses in Nigeria's agriculture sector now have a fresh opportunity to scale, as the Lagos State Government launched a ₦500 billion 'Produce for Lagos Offtake Fund'—a groundbreaking initiative that promises guaranteed market access for farmers, agri-processors, and food suppliers.
At the official launch held in Lagos on Wednesday, Ondo State Governor Lucky Aiyedatiwa, represented by Deputy Governor Olayide Adelami, declared the state's full support and readiness to partner with Lagos on the project.
"This initiative creates a structured, dependable market for farmers and agri-SMEs. With Ondo's vast agricultural capacity, we are well-positioned to be a leading contributor," he said.
The Offtake Fund is designed to eliminate post-harvest losses—a major pain point for SMEs in the sector—by offering efficient logistics, storage solutions, and consistent offtake agreements from major food buyers in Lagos.
Governor Babajide Sanwo-Olu of Lagos said the initiative emerged from a deep understanding of market needs. Research shows that Lagos consumes over 50% of the southwest's food, but loses nearly half due to poor transportation and storage.
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"This fund isn't just about financing—it's about building a reliable food supply chain that supports smallholders, cooperatives, and agro-businesses," Sanwo-Olu said.
As part of the launch, 150 Liquefied Natural Gas (LNG) trucks were unveiled to serve as long-haul transport vehicles, helping SMEs move products efficiently and at lower cost.
SME owners can expect access to:
- Guaranteed produce offtake agreements
- Logistics support through the new fleet
- Partnership opportunities with Lagos and partner states
- Access to financing and buyer networks via the fund
Top players in finance and government—including UBA Chairman Tony Elumelu, who donated ₦25 billion to the fund—hailed the project's potential to generate jobs, reduce waste, and expand market access for agri-preneurs and food suppliers.
Other states such as Ogun, Kogi, Niger, and Taraba also signed up, showcasing the nationwide scale of the program.
For SMEs in Ondo and beyond, this fund signals a new era of structured agricultural trade, market stability, and cross-state collaboration—offering a springboard to scale operations, expand reach, and grow income.
