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FG Taps AI, Blockchain to Boost Agribusiness Supply Chains, Urges Continental Action 

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By Omoyeni Ojeifo

With weak supply chains continuing to push up food prices and reduce farmers’ earnings, the Federal Government has urged African countries to embrace digital procurement, artificial intelligence (AI), blockchain and smart logistics to modernise agriculture.

The government said adopting technology-driven procurement systems would help reduce post-harvest losses, improve food distribution, strengthen supply chains and boost food security across the continent.

It also called for greater investment in roads, railways, inland waterways, ports, cold-chain infrastructure, warehouses and digital logistics platforms linking farmers directly to markets.

According to the Federal Ministry of Agriculture and Food Security, these investments would lower the cost of moving agricultural produce, improve regional trade and unlock opportunities under the African Continental Free Trade Area (AfCFTA).

Dr. Marcus Ogunbiyi, Permanent Secretary in the Ministry, made the call on Tuesday at the Africa Procurement and Supply Chain Summit and Awards 2026 in Lagos.

He said procurement should no longer be viewed as a routine administrative process but as a strategic tool for economic transformation, institutional development and improved public service delivery.


Ogunbiyi disclosed that governments spend between 12 and 20 per cent of Gross Domestic Product through public procurement, making every procurement decision an opportunity to stimulate industries, create jobs and deliver greater public value.

He identified poor transport networks, inadequate logistics infrastructure, fragmented cross-border systems, expensive freight services and limited warehousing as major obstacles to Africa’s agricultural growth.

“Weak logistics and transportation systems contribute significantly to post-harvest losses, reduce farmers’ incomes, increase food prices and weaken food security across the continent,” said Ogunbiyi.

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He said farmers rely on efficient logistics to receive seeds, fertilisers, machinery and extension services on time, while harvested crops must quickly reach storage facilities, processors and markets.

Ogunbiyi urged African governments to expand e-procurement platforms, electronic contract management, data analytics and other digital systems to improve transparency and efficiency.

“Strengthening transparent, technology-driven procurement and resilient supply chains is critical to realising Agenda 2063 and maximising opportunities under the AfCFTA.”

He said the ministry is using procurement as a strategic tool to implement President Bola Tinubu’s Renewed Hope Agenda by improving mechanisation, irrigation, storage, processing infrastructure and agricultural value chains.

Ogunbiyi added that procurement reforms within the ministry include digitalisation, stronger monitoring and evaluation, professionalising procurement officers and wider stakeholder engagement.

“Every procurement process within the ministry complies with the Public Procurement Act and is guided by integrity, due process, competition and effective contract management.”

The summit also featured awards recognising outstanding contributions to procurement and supply chain management and attracted government officials, development partners and industry leaders from across Africa.

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