Inefficient supply chains are costing Nigeria’s agricultural sector an estimated $3 billion annually, with post-harvest losses reaching up to 40% in key food crops.
Agriculture remains central to Nigeria’s economy, contributing around 25% of GDP and employing more than 35% of the workforce. However, poor rural roads, inadequate storage facilities, and unreliable power supply continue to undermine productivity and incomes.
However, the report by Rome Business School Nigeria highlights that women, who make up about 70% of agro-processors, bear a disproportionate share of the burden, as spoilage and long transport times erode earnings and worsen rural poverty.
It points to initiatives such as Special Agro-Industrial Processing Zones (SAPZs) as a partial solution, cutting farm-to-processor travel times from days to hours.
Climate change has added another layer of risk. Flooding in 2024 alone reduced agricultural output by 15% in some northern states, further exposing the fragility of food supply networks.
The report concludes that halving spoilage through improved cold-chain infrastructure and digital inventory systems could significantly boost farmer revenues, enhance national food security, and contribute materially to GDP growth.
AfCFTA and Logistics Reforms
Meanwhile, Nigeria could see over 20% growth in intra-African trade if it aligns its supply chain infrastructure with the African Continental Free Trade Area (AfCFTA).
Currently, fragmented customs systems, inconsistent valuation standards, and weak cross-border logistics limit Nigeria’s ability to benefit fully from regional trade integration.
Small and medium-sized enterprises (SMEs) are particularly affected, often forced into informal trade channels due to double taxation and regulatory bottlenecks.
The Rome Business School Nigeria report stresses that modern supply chains, supported by digital tools such as cloud computing, blockchain, and enterprise resource planning (ERP) systems, are essential to integrating Nigerian businesses into continental and global markets.
However, high implementation costs, poor broadband coverage, and skills shortages remain major barriers.
eCommerce, projected to reach $10 billion by 2025 and nearly $15 billion by 2029, is identified as a key growth driver, enabling SMEs and women-led enterprises in remote areas to access national and regional markets.
With coordinated investments in ports, rail, inland waterways, and digital infrastructure, the report argues Nigeria could turn SCM into a strategic lever for export competitiveness, job creation, and sustainable economic diversification.
