How lack of funding, poor logistics drive Nigeria’s N3.5trn post-harvest losses

Nigeria produces approximately 55 million metric tonnes of food annually, but about 40 percent is lost due to financing gaps, poor logistics limiting cold chain infrastructure, according to the Organisation for Technology Advancement of Cold Chain in West Africa (OTACCWA).

According to Alexander Isong, president of OTACCWA, during an interview with the News Agency of Nigeria, the country 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.

“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 emphasised that cold chain infrastructure plays a crucial role in addressing food insecurity in Nigeria’s agricultural sector, particularly in reducing post-harvest losses.

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“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 explained that the primary obstacle is the lack of adequate cold storage facilities, which severely hampers efforts to address post-harvest losses, noting that cold chain is an integral part of agriculture, and without sufficient investment, the sector’s growth and potential are severely limited.

Funding and financing gaps hinder progress

Isong noted that funding and investment gaps is a major hurdle in the agric sector, 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 urged that more farmers, middlemen and general marketers be educated about the importance of cold chain infrastructure in Nigeria.

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Poor logistics, export potential, and policy gaps

According to him, the industry also suffers from poor 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.

Additionally, Isong said the absence of clear policy direction and regulatory frameworks for cold chain development in Nigeria as a major challenge.

Noting that, “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.”

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Smallholder structure, environmental factors add pressure

The association president 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.