Nigeria is sitting on a silent crisis—and a golden opportunity.
Each year, the country loses up to 40% of its total food production to post-harvest spoilage.
For perishable goods like fruits and vegetables, that number soars to 70%, according to the African Post-Harvest Loss Information System (APHLIS).
The culprit? A severely underdeveloped cold chain system—the backbone of temperature-controlled storage and logistics for perishable goods.
With fewer than 1,000 cold trucks in operation, compared to the 25,000 required to move over 11 million metric tonnes of perishables annually, Nigeria’s cold chain capacity is operating at less than 4% of its potential.
The gap is costing the nation’s farmers and agribusinesses an estimated ₦3.5 trillion each year, according to Ecotutu co-founder Michael Akintese.
But this massive shortfall also signals a ₦160 billion investment opportunity, according to the U.S. International Trade Administration.
“We’ve only just scratched the surface,” said Alexander Isong, President of the Organisation for Technology Advancement of Cold Chain in West Africa (OTACCWA). “Cold storage facilities in Nigeria are next to zero. Most are small, fragmented rooms that barely make a dent.”
From solar-powered cold rooms and refrigerated trucks to AI-powered tracking systems and blockchain-based inventory controls, Nigeria’s cold chain sector is brimming with potential for both local and international investors.
“There’s a goldmine of opportunity waiting to be tapped,” said Daniel Onwude, CEO of Coldtivate, a digital cold chain logistics platform.
Key areas for investment include:
- Cold trucks and last-mile delivery tricycles for rural outreach
- Solar-powered cold storage units to tackle power reliability issues
- Smart tech integration like IoT, RFID, AI, and digital twins
- Workforce development in cold chain design, installation, and maintenance
- Plastic crate manufacturing to replace spoilage-prone packaging
These efforts are not just about logistics—they’re a pillar in Nigeria’s fight against food insecurity, a growing concern as climate change and population growth pressure the country’s food systems.
The human cost of this crisis is deeply personal.
Fatima, a tomato vendor in Lagos’s Mile 12 market, knows the pain of post-harvest loss all too well.
“We bring them from Kano, only for half to rot before anyone buys them,” she said. “Sometimes I lose up to 50% of my profits – just like that.”
Haliru Abdulsalam, a fruit trader, echoed her frustrations. “If my goods sit more than two or three days without proper cooling, they spoil. It’s a race against time and we’re losing,” he said.
Globally, the cold chain equipment market is booming. Valued at $35 billion in 2024, it’s expected to more than triple to $112.23 billion by 2032, according to Fortune Business Insights.
In Nigeria, businesses that adopt cold chain solutions have already seen profit increases of over 23%, Akintese revealed, underscoring the clear return on investment for early adopters.
As food demand rises and logistics become more complex, experts agree: cold chain infrastructure is no longer optional – it’s essential.
“The cold chain is critical to solving Nigeria’s food loss crisis,” Onwude stressed. “With the right investment and innovation, it can unlock economic growth, boost food security, and transform agriculture across the country.”
The race is on. And for forward-thinking investors, the cold chain isn’t just an opportunity—it’s a revolution in the making.