Nigeria’s Cold Chain Market: A N160bn Goldmine for Investors Battling Post-Harvest Losses

Nigeria’s cold chain sector, valued at N160 billion as of 2023, is revealing massive investment potential as it struggles to meet the demands of transporting over 11 million metric tonnes of perishable goods annually. With fewer than 1,000 functional cold trucks—far short of the estimated 25,000 needed—the country faces a severe shortfall in infrastructure. This gap is costing the agricultural sector dearly, with post-harvest losses reaching up to N3.5 trillion each year. The cold chain, which includes cold storage and temperature-controlled transport, is vital in preserving food quality and reducing waste.

Industry experts like Alexander Isong of OTACCWA and Michael Akintese of Ecotutu emphasize that Nigeria is still “scratching the surface” of its cold chain capacity, currently operating at under four percent of its potential. The current cold storage network is largely underdeveloped, consisting mostly of small, inefficient cold rooms. This shortage disproportionately affects rural areas and small-scale traders who can’t access or afford reliable preservation methods. It’s a problem with real consequences—vendors regularly lose half their perishable stock before it can be sold.

However, the rising demand for temperature-controlled logistics is drawing both local and foreign interest. Daniel Onwude, CEO of Coldtivate, describes the cold chain as a “goldmine” for investors. From solar-powered storage units and refrigerated trucks to last-mile cold tricycles for rural delivery, the sector offers a range of entry points. These opportunities not only promise high returns but also align with goals of agricultural sustainability and food security.

What makes the investment even more appealing is the role of technology. Experts advocate for integrating smart systems like IoT, RFID, blockchain, and AI to improve tracking and temperature monitoring. There are also untapped government incentives such as free trade zones and tax breaks aimed at boosting cold infrastructure. Another critical area is skills development—Nigeria lacks trained professionals for cold tech installation and maintenance, opening doors for education and workforce development initiatives.

At the heart of it all is the human cost of food waste. Every year, Nigeria loses around 40 percent of its food production post-harvest, with perishable fruits and vegetables being the hardest hit. Traders like Fatima at Lagos’s Mile 12 market and Haliru in Surulere are living proof of how lack of preservation cuts into profits and deepens food insecurity. The cold chain isn’t just an economic opportunity—it’s a frontline solution to feeding the nation more efficiently and sustainably.

Source: Business day