Nigeria's cold chain logistics face a shortfall, with fewer than 1,000 cold trucks available, far below the 25,000 needed to manage over 11 million metric tons of perishable goods annually, according to a U.S. International Trade Administration report. This gap highlights an investment opportunity in the country's cold chain sector, valued at approximately $206 million in 2023.
Potential investments range from automated storage solutions to the manufacturing of plastic crates for fresh produce transport, and the acquisition of cold storage trucks for perishable goods. Alexander Isong, president of the Organisation for Technology Advancement of Cold Chain in West Africa, stated, "The opportunities in the countries' cold chain industry are huge and massive." He noted the insufficiency of existing cold storage facilities, saying, "We have very small, minute cold rooms that don't scratch the surface."
Michael Akintese, co-founder of Ecotutu, a cold-chain storage and logistics firm, reported that Nigeria operates at less than four per cent of its cold chain capacity requirement. This shortfall costs farmers and agribusinesses up to $4.5 billion annually. As demand for temperature-controlled logistics rises, the sector is attracting interest from investors both locally and internationally. Experts view it as a vital yet underdeveloped element in Nigeria's pursuit of food security and sustainable agriculture.
Daniel Onwude, CEO of Coldtivate, emphasized the sector's potential, despite existing challenges. He remarked, "There's a goldmine of opportunity waiting to be tapped." Investment areas include solar-powered cold storage and transport solutions, expanding cold storage facilities, and increasing refrigerated trucks and last-mile delivery options, particularly in rural areas, to enhance accessibility and efficiency.
Onwude also highlighted the importance of integrating smart technologies like IoT, RFID, AI, blockchain, and digital twins for better monitoring and control. He advocated for leveraging government incentives, such as free trade zones, to foster infrastructure development and build local expertise in cold chain logistics.
The global cold chain equipment market is projected to grow significantly, with estimates reaching $112.23 billion by 2032, according to Fortune Business Insights. Akintese noted that small businesses experienced an average profit increase of 23.47 per cent after accessing cold-chain solutions.
According to the International Trade Association, Nigeria's cold chain sector faces a skills gap in cold tech design, installation, and maintenance, presenting both a challenge and a training opportunity for local investors.
Each year, Nigeria loses around 40 per cent of its total food production to post-harvest spoilage, with fruits and vegetables suffering losses up to 70 per cent, as reported by the African Post-Harvest Loss Information System. This issue impacts vendors like Fatima at Lagos's Mile 12 market, who said, "We bring them from Kano, only for half to rot before anyone buys them." Haliru Abdulsalam, another trader, echoed similar concerns, stating, "If my goods are kept for more than two or three days without proper preservation, they start to spoil." The cold chain is expected to address these losses.
Source: Business Day