Nigeria's Cold Chain Industry

The current national focus on food production and self-sustainability has comprehensively increased demand for cold chain services and equipment in Nigeria. The industry has little competition. The few market participants are relatively small-scale and inexperienced. According to the chairman of the Governing Council of the Nigerian Institute of Transport Technology, the country annually loses at least $9 billion to food wastage, largely due to poor cold chain logistics.

Products most affected include, produce, dairy, seafood, poultry, vaccines, and medicine. Experts estimate that each year, about 11 million metric tons of fresh fruits and vegetables are transported across Nigerian cities. Handling this volume of food products should require a minimum of 25,000 refrigerated trucks according to industry reports. However, there are fewer than 1,000 in Nigeria. The country’s intermittent power availability poses a significant challenge to cold chain infrastructure. As a result, off-grid, renewable energy solutions are critically needed.

Nigeria’s cold chain industry is still in its infancy. Therefore, there are only few local engineers and technicians with expertise in refrigeration equipment, handling, and support. This highlights the training opportunities that exist in developing the local engineering capacity in the design, installation, modification, repair, and maintenance of cold technologies.  Several local investors intending to set up cold chain business are confronted by the lack of experienced cold chain logistics and management in Nigeria, signaling opportunities for outside expertise.

For more information, please contact Commercial Specialist Chamberlain Eke, email: chamberlain.eke@trade.gov.