Nigeria’s cold chain logistics market, currently valued at over ₦160 billion, is rapidly emerging as one of the country’s most promising investment frontiers, driven by rising demand for food preservation, pharmaceutical storage, and temperature-controlled transport services.
Industry analysts say the sector, which remains underdeveloped relative to national needs, presents a significant opportunity for both local and foreign investors looking to capitalize on the country’s expanding agricultural output and growing urban consumption.
According to a recent report by the Nigerian Investment Promotion Commission (NIPC), Nigeria loses an estimated 45% of perishable food annually due to poor storage and distribution infrastructure. The cold chain sector is now being positioned as a vital solution to reduce post-harvest losses and stabilize food prices.
“With increasing attention to food security and healthcare efficiency, the cold chain market is no longer a luxury but a necessity,” said Ibrahim Musa, Director of Infrastructure Development at the NIPC. “We’re witnessing strong investor interest, particularly in refrigerated warehousing, mobile cooling systems, and pharmaceutical-grade storage.”
The rise of e-commerce and the government’s renewed focus on improving supply chain infrastructure especially under its economic diversification agenda have further boosted confidence in the sector. Key players in agribusiness, logistics, and pharmaceuticals are already exploring strategic partnerships and technology adoption to bridge the existing infrastructure gap.
In 2024, the Central Bank of Nigeria and the African Development Bank jointly earmarked funds to support cold chain projects across the country, particularly in regions with high agricultural activity such as Benue, Kaduna, and Ogun states.
However, experts warn that energy reliability, regulatory clarity, and access to financing remain challenges for scale-up.
“There’s a clear market need and growing awareness, but to fully unlock the N160 billion potential, government policies must support innovation, ease of doing business, and private sector participation,” said Dr. Chinyere Okafor, a logistics consultant with ColdLink West Africa.
Despite these challenges, the market outlook remains positive. With increasing consumer demand for safe, high-quality perishables and medical products, Nigeria’s cold chain industry is poised to become a key driver of economic growth and job creation in the years ahead.
source:businessday.ng
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