High freight costs, cold chain issues threaten Nigeria’s horticulture exports

NIGERIA – Nigeria’s horticulture industry, valued at approximately US$248 million, is struggling due to rising freight costs and inadequate cold chain infrastructure.

These challenges are making it difficult for exporters to compete in the global market.

Adetiloye Continental, Chief Executive of the Produce Export Development Alliance (PEDA), emphasized that horticulture exports remain a key source of foreign exchange for Nigeria.

He noted, “A lot of Nigerians have been involved in it. The motivation is the fact that they can earn foreign exchange. The second reason is that exportation helps us as a country to improve our domestic standards.”

“The more we embrace export standards, the more our domestic standards improve. The promise of having access to a premium market is also an attraction.”

In 2023, Nigeria exported horticultural products worth US$248 million. However, export volumes have started to decline. Continental explained that this drop is due to several factors, including the rising cost of freight and increasing production expenses.

He noted that maintaining standards remains a challenge, particularly for those exporting fresh perishables, as cold chain infrastructure is almost nonexistent. The few available cold storage facilities are costly to rent, further burdening exporters.

Nigeria’s agricultural resources provide opportunities to expand exports of fresh vegetables to meet increasing global demand.

While many exporters focus on Europe and Asia, Continental pointed out that the Middle East offers a growing market with lower entry barriers.

According to The Nation, exports of fresh vegetables have seen growth in recent years. The United Kingdom, with a vegetable market worth US$23.12 billion, has become a notable destination.

Nigeria, alongside other Sub-Saharan African countries, is exporting vegetables like green beans, peas, and avocados.

Ofon Udofia, Executive Director of the Nigerian Institute of Export Operations and Management (IEOM), highlighted Nigeria’s potential in fruit and vegetable exports but stressed that challenges remain.

“It is becoming very challenging for farmers to cultivate their land. Vegetable seeds are very expensive. Transporting the seeds to farmers across the country to plant is very tasking in view of insecurity and high cost of freight,” said Dr. Abayomi Olaniyan, former Executive Director of the National Institute for Horticultural Research (NIHORT).

NIHORT is working to develop local seed varieties to support farmers. Meanwhile, PEDA projects that Nigeria’s horticultural exports could reach US$500 million by 2030, provided that the sector overcomes bottlenecks such as high freight costs and cold chain limitations.

Stakeholders in the horticulture industry are calling for urgent investments in infrastructure and policy support to ensure Nigeria remains competitive in the global market.

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