Though Agriculture offers one of Nigeria’s greatest economic opportunities, but it is no longer sufficient alone, basically owing to sustainable logistics gap – considered as the greatest constraints to agricultural competitiveness in Nigeria.
The Chief Executive Officer, Centre For The Promotion Of Private Enterprise (CPPE), Dr Muda Yusuf, who disclosed this at a seminar organised by the Ministry of Commerce, Cooperatives, Trade & Investment, Lagos State, saidefficient logistics is not merely a transportation issue, but fundamentally an issue of competitiveness as agricultural commodities are highly perishable.
He said: “Agriculture alone is no longer sufficient.The future belongs to agribusiness.It belongs to value addition.It belongs to logistics.It belongs to sustainable packaging.It belongs to digital commerce.It belongs to innovation.The businesses that will thrive over the next decade will not necessarily be those that produce the most.They will be those that move products most efficiently, preserve quality most effectively, understand their customers most accurately and embrace technology most decisively.
“Our objective should therefore be clear.We must build agricultural enterprises that are productive, profitable, environmentally responsible and globally competitive.If we succeed, Nigeria will not only feed itself.We will build globally competitive food brands.We will expand exports.We will create millions of productive jobs.We will strengthen rural. prosperity.And we will accelerate economic diversification.
“The opportunity before us is immense.The responsibility to seize it belongs to all of us—government, investors, entrepreneurs and every participant in the agricultural value chain.”
Yusuf said despite that Nigeria possesses abundant arable land, diverse agro-ecological zones, favourable climatic conditions and a rapidly expanding domestic market, with the African Continental Free Trade Area (AfCFTA) also providing unprecedented opportunities for Nigerian agricultural products to access a market of over 1.4 billion people, however, opportunities alone do not guarantee competitiveness, as competitiveness depends on efficiency, quality and reliability.
“Sustainable Logistics is the backbone of competitive agribusiness. One of the greatest constraints to agricultural competitiveness in Nigeria is logistics.Logistics refers to the planning, movement, storage and distribution of goods from producers to consumers.In agribusiness, logistics involves transporting farm inputs to producers, moving harvested products to storage facilities, processing centres, wholesalers, retailers and ultimately consumers .
“Sustainable logistics goes a step further. It seeks to achieve these objectives efficiently while minimising environmental impacts, reducing waste and ensuring long-term economic viability. In practical terms, sustainable logistics means delivering agricultural products faster; at lower cost; with minimal losses; and using environmentally responsible systems.Efficient logistics is not merely a transportation issue. It is fundamentally an issue of competitiveness. Agricultural commodities are highly perishable.
“Fresh vegetables, fruits, fish, dairy products and livestock products deteriorate rapidly if they are not properly handled.Every delay reduces quality. Every delay reduces value. Every delay reduces farmers’ incomes.Unfortunately, Nigeria continues to experience very high post-harvest losses, estimated in many commodity groups at between 30 and 50 per cent. These losses represent enormous waste of investment, labour, land, water and energy. Improving logistics therefore translates directly into higher productivity and higher profitability,” he said.
He stressed that building an efficient agricultural logistics system requires investment across several areas – transportation infrastructure; cold-chain infrastructure; modern warehousing; digital logistics; and renewable energy solutions, which can significantly reduce operating costs, while supporting environmental sustainability.
Yusuf noted that packaging is often underestimated within the agricultural value chain. “Many businesses see packaging simply as a container. In reality, packaging performs several strategic functions – it protects products; preserves freshness; extends shelf life; reduces contamination; facilitates transportation; improves product presentation; enhances traceability; strengthens consumer confidence; and influences purchasing decisions.
“This is where eco-friendly packaging becomes important. Eco-friendly packaging refers to packaging materials and systems designed to minimise environmental impacts throughout their life cycle. Such packaging is produced from renewable, recyclable, biodegradable or reusable materials.
“Examples include paper products, cardboard, bamboo fibre, cassava starch, corn starch, sugarcane fibre and biodegradable bioplastics. The transition towards sustainable packaging is no longer driven solely by environmental concerns. It has become an important commercial strategy. Consumers across the world increasingly prefer environmentally responsible products. International retailers and export markets are introducing stricter sustainability requirements. Businesses that fail to adapt may eventually lose market access.”
While emphasising the importance of e-Commerce as having the advantage of opening new markets for farmers, he saidno development has transformed modern commerce more profoundly than digital technology.
“Agriculture is not exempt. E-commerce is rapidly changing how agricultural products are marketed, purchased and distributed. Digital platforms now enable farmers to sell directly to households, restaurants, hotels, supermarkets, processors and exporters.
“This shortens supply chains. It reduces the number of intermediaries. It improves price transparency. It expands market access. Most importantly, it enables farmers to retain a larger share of consumer spending. Digital commerce also provides valuable market intelligence. Businesses gain real-time information on consumer preferences, demand patterns and pricing trends. This enables better production planning and inventory management.
“Electronic payment systems improve transaction efficiency while reducing business risks. Social media platforms have equally become powerful marketing tools for agribusinesses, particularly small and medium-sized enterprises. Today’s successful farmer must also become a digital entrepreneur.”
To turn around the fortune of the sector, he said government also has an important role to play – upgrading rural transport infrastructure; expanding cold-chain facilities; improving electricity supply to logistics hubs; promoting renewable-energy solutions; strengthening rural broadband connectivity; and improving access to affordable finance among others.
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