Nigeria needs 5,000 cold trucks and 100 cold rooms, each with a capacity of 500 tonnes, to tackle its N3.5 trillion annual post-harvest losses, according to the Organisation for Technology Advancement of Cold Chain in West Africa (OTACCWA).
The President of the association, Mr. Alexander Isong, disclosed this in an interview with the News Agency of Nigeria (NAN) in Lagos.
According to Isong, Nigeria produces approximately 55 million metric tonnes of food annually, but about 40% is lost due to inadequate cold chain infrastructure.
He noted that this results in an economic loss of over N3.5 trillion each year.
He noted that, currently, Nigeria only has a few small and inadequate cold rooms.
“Nigeria is next to zero, we have very small, minute cold rooms that don’t scratch the surface. The only produce that benefits from some cold storage is imported fish,” he said.
Isong emphasized that cold chain infrastructure plays a crucial role in addressing food insecurity in Nigeria’s agricultural sector, particularly in reducing post-harvest losses.
“If the government’s primary concern is not combating post-harvest losses, achieving the goal of completely eradicating food insecurity in Nigeria will indeed be challenging,” he said.
He described the country’s cold chain infrastructure as woefully inadequate, presenting serious challenges for organisations.
“The primary obstacle is the lack of adequate cold storage facilities, which severely hampers efforts to address post-harvest losses.
“Cold chain is an integral part of agriculture, and without sufficient investment, the sector’s growth and potential are severely limited,” he explained.
Funding and financing gaps hinder progress
Isong also identified funding and investment gaps as a major hurdle, noting that Nigerian banks often lack understanding of the cold chain sector, making it difficult for organisations like OTACCWA to access loans.
He lamented the low level of awareness and adoption of cold chain facilities in Nigeria.
“Many people view cold chain as a ‘fancy’ aspect of agriculture rather than a crucial component,” he said.
He noted that this misconception highlights the need for awareness campaigns to educate farmers, middlemen, marketers, and the general public about the importance of cold chain infrastructure in agriculture.
Logistics, export potential, and policy gaps
According to him, the industry also suffers from inadequate logistics and weak market linkages.
“Without a continuous cold chain, produce certification is unattainable, severely limiting export opportunities,” he explained.
- He stressed the need to strengthen logistics and create solid market connections to boost the appeal of Nigerian produce, while maintaining a consistent cold chain system.
- Isong further identified the absence of clear policy direction and regulatory frameworks for cold chain development in Nigeria as a major challenge.
“With various agencies and bodies having fragmented roles, a comprehensive cold chain policy is essential to bring the sector up to par with global standards,” he said.
Smallholder structure, environmental factors add pressure
Isong explained that the sector’s dependence on small-scale farmers and the lack of cooperative aggregation make it difficult to implement large-scale cold chain solutions.
“Additionally, middlemen who dominate the market may be hesitant to adapt due to limited knowledge or concerns about disrupting their existing business operations,” he said.
He added that the industry faces climate and environmental challenges, such as extreme temperatures and high humidity, which can cause produce to spoil quickly without a functioning cold chain.
Isong noted that seasonal production cycles also contribute to price fluctuations, further affecting the sector’s stability and growth.
Cold chain can expand food variety
He emphasized that cold chain infrastructure can help increase the availability and variety of food in Nigeria, especially for perishable items like fruits, vegetables, and proteins.
