Nigeria is losing about 35 million metric tons of food every year due to poor storage facilities, weak infrastructure and inefficiencies across the agricultural value chain, according to a new report by Rome Business School Nigeria.
The report, titled “The Food Sector in Nigeria: Consumption Patterns, New Business Models, and Emerging Opportunities,” warned that the country is facing an escalating food security challenge despite the sector being valued at over $233 billion.
It estimated that nearly half of Nigeria’s perishable food output is lost annually, translating into economic losses of between N3.5 trillion and N5 trillion each year. The report attributed these losses largely to inadequate cold-chain systems, poor storage infrastructure and post-harvest handling inefficiencies.
The findings highlight that the impact extends beyond economic losses, affecting millions of households through rising food prices, reduced access to nutritious meals and increasing pressure on already strained food systems.
The report also comes amid Nigeria’s growing population, which has surpassed 230 million, with projections suggesting it could reach nearly 400 million by 2050. Analysts warn that without urgent improvements in agricultural infrastructure, rising demand could further expose structural weaknesses in food production and distribution.
Despite these challenges, the report noted that Nigeria’s food sector continues to present significant growth opportunities. It projected the country’s foodservice market to grow from $12.37 billion in 2026 to $21.38 billion by 2031, driven by rapid urbanisation, changing consumer lifestyles and the expansion of food delivery services and quick-service restaurants.
The study also pointed to increasing digital adoption within the sector, noting that more than 60 per cent of informal food vendors now use mobile payment systems. This development is helping to integrate small-scale operators into the digital economy while improving access to financial services.
Another major trend highlighted in the report is the rising demand for sachet-sized products, driven by declining purchasing power and rising living costs. It noted that many Nigerian households now spend as much as 70 per cent of their income on food, forcing consumers to buy smaller quantities of essential items.
Commenting on the findings, General Manager of Rome Business School Nigeria, Olakunle Asunmo, said the developments reflect broader economic pressures shaping consumption patterns across the country. He noted that while premium dining and high-end food services are expanding among affluent consumers, a larger segment of the population is increasingly reliant on affordable, smaller food packages.
The report identified cold-chain infrastructure as one of Nigeria’s most significant untapped investment opportunities, estimating the sector could be worth up to $10 billion. It added that innovations such as solar-powered cold storage systems and smart cooling technologies could significantly reduce post-harvest losses and improve food preservation.
Head of Academics at the institution, Sam Igwe, also stressed the importance of strengthening food systems, noting that food accessibility remains closely tied to public welfare and overall quality of life. He warned that when food systems fail, households face higher prices, poorer nutrition and reduced access to essential supplies.
