How cold chain can reduce post-harvest losses, contribute N2trn to Nigeria’s economy
The President of the Organisation for Technology Advancement of Cold Chain in West Africa (OTACCWA), Alexander Isong, has highlighted the critical economic and food security benefits of strengthening Nigeria’s cold chain logistics sector. Speaking at the 7th West Africa Cold Chain Summit and Exhibition in Lagos, Isong emphasized that robust investments in cold storage infrastructure could significantly reduce post-harvest losses and contribute as much as ₦2 trillion ($4.8 billion) to Nigeria’s economy annually.
Isong noted that Nigeria produces about 55 million metric tonnes of food each year, yet over 40% is lost before reaching the consumer, largely due to poor cold chain infrastructure. The resulting economic loss is estimated at ₦3.5 trillion ($8 billion) yearly. Specific commodities such as tomatoes face up to 50% wastage, valued at ₦75 billion ($180 million), while over 30% of locally produced beef and dairy spoil before retail, costing around ₦200 billion ($480 million) annually.
Fishery losses are also severe: Nigeria, despite importing over 900,000 metric tonnes of fish annually, wastes 30% of locally caught fish due to inadequate storage—a ₦100 billion ($240 million) loss.
He stressed that Nigeria’s current cold storage capacity, less than 100,000 metric tonnes, lags behind Egypt’s 600,000 MT and South Africa’s 800,000 MT. Similarly, less than 5% of trucks transporting perishables in Nigeria are refrigerated, compared to 30% in South Africa and 50% in Europe.
To bridge this gap, Isong called for:
- Public-Private Partnerships (PPP) to fund solar-powered cold storage hubs for rural farmers.
- Fleet expansion incentives for refrigerated trucks.
- The development of multi-temperature warehouses for both domestic and export markets.
He also underscored the need for Nigeria to meet global cold chain standards such as HACCP, ISO 22000, Codex Alimentarius, and Halal Certification, noting that only 30% of the country’s meat processing facilities currently qualify for export markets. This, he added, is a missed opportunity considering the global Halal meat market is valued at $2.1 trillion.
Isong pointed out that existing cold chain initiatives under the National Livestock Transformation Plan (NLTP), Agricultural Promotion Policy (APP), and National Food Safety Policy are hampered by poor coordination between regulatory agencies. He recommended a unified National Cold Chain Policy, where:
- NAFDAC oversees food safety compliance,
- SON enforces cold chain equipment standards,
- FMARD provides agricultural cold-chain infrastructure support,
- FMITI and FMLSD support investment incentives for meat, dairy, and eggs.
Source: Tribune Online
Expert Review for Agri-Food Stakeholders
The implications of Alexander Isong’s remarks go beyond mere statistics — they are a strategic blueprint for transforming Nigeria’s food system.
- Tackling Post-Harvest Losses at the Root
With over 40% of Nigeria’s food lost post-harvest, cold chain logistics presents a high-return investment for agrifood stakeholders. This loss affects farmer income, consumer prices, and national food availability. - Boosting Agribusiness Competitiveness
Adoption of global standards (HACCP, ISO 22000, Codex) opens up premium international markets—especially in Halal meat, a $2.1 trillion industry. Upgrading cold chain compliance can put Nigeria on the export map. - Revitalizing Local Supply Chains
Solar-powered cold hubs and reefer trucks improve farm-to-market logistics, helping reduce spoilage and increase bargaining power for smallholder farmers. This could make rural agriculture more profitable and attractive. - Enabling Food Security and Import Substitution
With 900,000 metric tonnes of fish imported annually, addressing storage losses in the local fish sector is critical. Improved preservation can cut reliance on imports and strengthen national food sovereignty. - Unlocking Private Sector Investment
The call for public-private partnerships aligns with Nigeria’s infrastructure deficit. Agribusiness investors should position themselves to partner with the government on scalable cold chain projects. - Institutional Bottlenecks Need Fixing
The proposed National Cold Chain Policy is a crucial step. Without regulatory harmonization, even the best-funded cold chain initiatives risk stalling. Stakeholders should advocate for an integrated governance structure.
Strategic Recommendations for Stakeholders
- Farmers’ Cooperatives: Pool resources to co-invest in cold storage units and access bulk logistics contracts.
- Agri-Investors: Channel capital into cold chain technologies, especially solar-powered hubs and reefer logistics.
- Policy Advocates: Engage with regulatory agencies to fast-track the proposed Cold Chain Policy for harmonized implementation.
- Export-Focused Producers: Begin aligning operations with international cold chain and food safety standards to tap global markets.
The data and insights shared by OTACCWA underscore cold chain logistics as a critical growth pillar for Nigeria’s agrifood economy. Bridging the infrastructure and policy gaps can unlock billions in value, strengthen food security, and empower rural agriculture. Stakeholders must act now to seize this opportunity.
