Nigeria’s food economy is being constrained less by how much it produces and more by how much it loses after harvest, according to the Chief Executive of Terroso Group, Opeoluwa Runsewe, who is calling for urgent investment in cold chain infrastructure to unlock value across the agricultural sector.
Nigeria loses between 30 per cent and 50 per cent of its agricultural produce after harvest, he said, citing inadequate storage, poor transportation systems, and the lack of coordinated cold chain infrastructure from farm gate to consumer markets.
Speaking at a recent virtual press conference themed ‘Post-Harvest Losses: The Business Case for Cold Chain Investment and Agro-Industrialisation’, Runsewe said the absence of an integrated, temperature-controlled logistics and storage network continues to erode farm output, weaken supply chains, and limit the country’s agro-industrial potential.
“Nigeria does not have a food shortage problem; we have a preservation problem,” Runsewe said. “Until we build a fully integrated, temperature-controlled value chain, we will continue to lose up to half of what we produce. Cold chain infrastructure is not just an agricultural need; it is an economic imperative.”
The scale of post-harvest losses has far-reaching implications for Africa’s largest economy. Beyond the immediate loss of food, the inefficiencies ripple across the value chain, reducing incomes for farmers, constraining raw material supply for processors, and contributing to price volatility in consumer markets.
Runsewe said weak logistics and storage systems are particularly damaging to Nigeria’s ambitions to expand agro-processing capacity. High loss rates diminish both the volume and quality of inputs available to processing plants, undermining utilisation rates and discouraging large-scale investment in food manufacturing.
“The economics of processing depend on consistent supply and quality of raw materials,” he said. “When up to half of produce is lost before it reaches the factory, it becomes difficult to sustain efficient operations or attract long-term capital.”
Farmers are also bearing the brunt of the infrastructure gap. Without access to reliable storage, many are forced to sell perishable goods immediately after harvest, often at depressed prices. This dynamic weakens their bargaining power, reduces income stability, and limits their ability to reinvest in productivity-enhancing inputs.
The lack of cold chain systems, including refrigerated transport, packhouses, and temperature-controlled storage facilities, has effectively created a structural bottleneck in Nigeria’s food economy, where gains in agricultural output fail to translate into proportional market value.
Runsewe argued that addressing these constraints requires a shift in both policy and financing approaches. He called for infrastructure-grade investment models tailored to the development of cold chain systems, noting that traditional short-term lending structures are ill-suited to capital-intensive logistics projects.
“We need to start treating the cold chain as core infrastructure, not as an optional add-on to agriculture,” he said. “That means designing financing frameworks that reflect long-term asset lifecycles and provide sustainable returns to investors.”
He also outlined a set of policy reforms aimed at accelerating investment, including tax incentives for cold chain projects, reduced import duties on critical equipment, standardisation of storage and handling regulations, and the development of a national cold chain strategy through public-private partnerships.
Such measures, he said, would help lower entry barriers for private capital while creating a more predictable regulatory environment for operators across the value chain.
The issue of post-harvest losses has taken on added urgency in the context of rising food prices and inflationary pressures in Nigeria. Supply-side inefficiencies, particularly in storage and logistics, continue to constrain availability in urban markets, amplifying price fluctuations and undermining food security.
Runsewe said improving preservation capacity could play a significant role in stabilising prices by smoothing supply across seasons and reducing the need for costly imports.
“Solving post-harvest losses is not just about reducing waste; it has direct implications for inflation control, GDP growth, and national food security,” he said.
The lack of cold chain infrastructure is also limiting Nigeria’s competitiveness in international agricultural markets. Export-orientated producers often face high rejection rates due to quality degradation during handling and transportation, particularly for perishable goods.
Runsewe emphasised the need for locally adapted solutions to meet global standards, pointing to technologies such as solar-powered cold rooms, integrated packhouses, and partnerships with third-party logistics providers.
“Temperature control must begin at the point of harvest and continue throughout the distribution process,” he said. “Without that continuity, it becomes difficult to meet the quality requirements of export markets.”
While Nigeria has made progress in increasing agricultural output in recent years, the study suggests that production gains alone are insufficient to drive sector-wide transformation. Instead, the focus must shift towards preserving value, improving logistics efficiency, and strengthening linkages between producers, processors, and markets.
Runsewe said collaboration between the public and private sectors will be critical to scaling such interventions. He called on investors, development finance institutions, policymakers, and industry stakeholders to align efforts in building a more resilient and efficient food system.
“There is significant untapped value in Nigeria’s agricultural sector,” he said. “But unlocking that value requires coordinated action to fix the infrastructure gaps that continue to hold the industry back.”
