Nigeria’s storage infrastructure crisis presents an opportunity worth as much as N160 billion in market valuation, according to the GMI Research estimate.
An estimated 11 million metric tons of fresh fruits and vegetables are transported annually across Nigerian cities.
According to the International Trade Administration (ITA) report on Nigeria’s Cold Chain Industry, handling this volume requires 25,000 refrigerated trucks, but Nigeria has fewer than 1,000, creating a deficit of over 24,000 trucks.
While the investment potential is ripe for both foreigners and locals, challenges persist, ranging from an erratic power supply to severe shortages of local engineers and technicians.
Scale of Nigeria’s food waste
The Economist recently highlighted a pressing issue: “A lack of cold storage means that much food is wasted; in Nigeria, 45 percent of produce rots.” This alarming statistic is hardly surprising when considering the Food and Agriculture Organization of the United Nations (FAO) report in December 2024, which revealed that nearly 31.8 million Nigerians were at risk of acute food insecurity.
The Nigeria Bureau of Statistics (NBS) echoed this troubling trend. Its 2023/2024 General Household Survey (GHS) found that 65.8 percent of households could not afford healthy, nutritious, or preferred foods in the previous 30 days due to financial constraints. Ironically, 70 percent of those facing food insecurity were crop farmers—the very individuals responsible for producing the nation’s sustenance. This paradox underscores a critical issue: Farmers cannot adequately feed the population because they lack the means to manage and preserve their harvests effectively.
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The economic cost of poor storage
A recent BusinessDay report highlighted that tomato farmers alone lost N2 billion annually due to poor storage facilities. More broadly, Nigeria suffers an estimated N3.5 trillion in post-harvest losses every year.
The Nigerian government currently lacks the financial capacity to fund large-scale storage infrastructure. According to another BusinessDay report, Nigeria’s 2025 agricultural budget is just $550.7 million, a stark contrast to Egypt’s $3.79 billion allocation in 2024. Egypt is even set to increase its agricultural budget further this year. Similarly, South Africa allocated $894 million to agriculture in 2024, with plans to expand this funding in 2025.
Investment potential in cold storage
This presents a prime opportunity for private investment in Nigeria’s storage infrastructure.
The GMI Research estimates that Nigeria’s cold chain market was valued at N160 billion in 2023 and is projected to grow significantly this year. The International Trade Administration (ITA) notes that the cold chain industry in Nigeria “has little competition,” making it a ripe opportunity for investors.
The stakes are high. According to John Onojeharho, chairman of the Governing Council of the Nigerian Institute of Transport Technology, “The country loses at least $9 billion annually to food wastage, primarily due to poor cold chain logistics.” Products most affected include fresh produce, dairy, seafood, poultry, vaccines, and medicines.
The ITA report said that around 11 million metric tons of fresh fruits and vegetables are transported across Nigerian cities each year. The industry report also suggested that handling this volume requires a minimum of 25,000 refrigerated trucks. Yet, Nigeria has fewer than 1,000.
Compounding the issue is the country’s unreliable power supply, which poses a significant challenge to cold chain infrastructure. Off-grid, renewable energy solutions are not just an option—they are a necessity.
The skills gap and infrastructure deficit
Additionally, there is a severe shortage of local engineers and technicians with expertise in refrigeration equipment handling, and maintenance. This gap presents a unique opportunity for training programmes to develop local capacity in the design, installation, repair, and maintenance of cold chain technologies.
For investors, the potential is immense, experts say. Many local entrepreneurs looking to establish cold chain businesses face hurdles due to a lack of experienced logistics and management expertise. This opens the door for foreign investors and experts to bring their knowledge and resources to the table.
The Food and Agriculture Organisation (FAO) estimates that Nigeria wastes about one-thirds of its annual food production—enough to feed over 40 million people.
To address this, experts say the government must prioritise the provision of public goods, creating an enabling environment for investors to thrive. By doing so, they can help tackle the growing issue of food wastage and unlock the hidden wealth in Nigeria’s storage infrastructure.
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