Features
The Role of AgTechnology in Taking Nigeria’s Agro-Processing to the Next Level
Oluwaseyi Awokunle | 17th August 2025

Before the discovery of crude oil, agriculture was the backbone of Nigeria’s economy. The country generated export earnings from major cash crops, including cocoa, groundnuts, palm oil, and cassava. 

The discovery of crude oil somewhat pushed the focus on agriculture to the back seat. Still, today, with the rise of technology, a new era is unfolding for Nigeria’s agricultural sector, one that promises to improve productivity, expand market access, and raise the quality of farm exports through agro-processing with tools like automation, digital quality control systems, and data-driven management setting new standards for efficiency and competitiveness. 

These technologies are helping agro-processors across the country add value to raw farm produce, reduce post-harvest losses, and meet both local and global quality standards. As Nigeria continues its journey to diversify the economy beyond crude oil, agro-processing stands out as a key growth area. Agriculture already contributes significantly to employment and GDP; however, the real opportunity lies in value addition, transforming raw materials into finished or semi-finished products.

What Is AgTechnology?

Agtechnology, also known as agriculture technology or ag-tech, refers to the use of technological innovations, such as modern tools, machines, software, and systems, in agriculture to increase yield, efficiency, and profitability.

This includes utilising technology to improve planting, developing modified crops that thrive in various environments, and implementing efficient harvesting methods. It can also involve the use of robots, AI, or any other processes necessary to solve the challenges the agricultural industry faces. 

Technology in agriculture has aided the development of agro-processing in Nigeria, facilitating innovations in automation, quality control, packaging, storage, and supply chain management.

How AgTechnology is Transforming Agro-Processing in Nigeria

Agtechnology is transforming agro-processing in these ways:

1. Automation and Mechanisation

Modern agro-processing facilities are adopting automation technologies, including precision farming tools, robotic harvesters, and innovative irrigation systems, to enhance efficiency and productivity. Cassava peeling, rice milling, tomato paste production, and palm oil extraction are becoming more efficient and less time-consuming with the help of automated systems.

These technologies reduce labour costs, increase operational efficiency, and ensure consistent product quality. The use of GPS and IoT sensors enables real-time monitoring of crop and soil health, facilitating better management and increased productivity.

2. Advanced Quality Control

Advanced sensors and AI-driven software can detect impurities, grade products, and ensure consistent quality. The tools detect defects and contamination more accurately than manual inspection, ensuring only the best products reach the market. This is especially useful for meeting export standards and reducing wastage. 

3. Digital Systems

Blockchain and QR code systems are now being used to track produce from farm to shelf. This builds consumer trust and opens Nigeria’s processed goods to global markets. Data analytics help optimise supply chains, reduce waste, and respond quickly to market trends.

4. Cold Chain and Smart Storage

Temperature-controlled storage units and IoT sensors help preserve perishable goods, like dairy, fruits, and vegetables. These innovations drastically reduce post-harvest losses and ensure year-round supply.

5. Renewable Energy Integration

Solar-powered dryers, cold rooms, renewable energy sources and processing plants are making agro-processing more sustainable, especially in rural areas with limited access to power. These tools have helped reduce costs and improve sustainability.

6. Mobile and Cloud Solutions

Cloud-based management systems and mobile apps enable processors to monitor inventory, manage logistics, and communicate with suppliers and buyers in real time, particularly benefiting small and medium-sized enterprises.

Benefits for Nigerian Agroprocessors

Agritechnology presents benefits for agroprocessors, such as:

  • Higher productivity and efficiency
  • Consistent product quality and safety
  • Reduced post-harvest losses
  • Improved market access and compliance with export standards
  • Lower operational costs through energy efficiency

Why It Matters for Nigeria’s Future

The integration of technology in agriculture is a giant step toward industrialisation, job creation, and food security. It enables farmers and entrepreneurs to add value locally, reduce their dependence on imports, and compete globally.

As the Nigerian government continues to support agribusiness through funding, policy, and innovation hubs, the private sector must also invest in technological solutions that address the real needs of Agroprocessors. 

Dr Akinwumi Adesina, President of the African Development Bank, has emphasised that “the future of agriculture in Africa lies in technology-driven value addition.” He advocates for the widespread adoption of agri-technology in agro-processing to unlock Nigeria’s full agricultural potential, create jobs, and boost export revenues.

Adopting technology is not just a competitive advantage; it is necessary for sustainable growth. From automating production lines to ensuring quality and reducing waste, technology is opening new opportunities for productivity and profitability. For Nigeria to fully harness its agricultural potential, embracing agri-technology in agro-processing is not just the next step; it’s the best way forward.