Nigeria's food crisis has reached alarming proportions, with prices soaring, incomes dwindling, and inflation pushing families to the brink. However, amidst the problems, agritech innovators are sowing hope, tackling waste and inefficiency in the agricultural supply chain. Companies like ColdHubs and Vendease are leading the charge, using technology to transform Nigeria's food systems and unlock a brighter economic future.

The statistics are stark. Food inflation has spiked to a 28-year high of 40.87%, with rice and beans seeing massive price jumps of 152.92% and 281.97%, respectively, in just one year. The UN reports that Nigerians spend over 65% of their income on food, leaving families in an endless chain of sacrifice. The situation is dire, with hunger a constant companion for many Nigerians.

According to Nnaemeka Ikegwuonu, founder of ColdHubs, the problem lies in a fractured agricultural supply chain. "You're dealing with seasonality on one hand and a severe lack of infrastructure on the other to store and manage food effectively," he said. ColdHubs is tackling this challenge with tech-driven, solar-powered walk-in cold rooms designed to help farmers and traders save their produce from spoiling too soon, extend the shelf life of their fruits and vegetables, and increase their income.

Tunde Kara, CEO of Vendease, shares a similar sentiment. "Nigeria's fragmented food supply chain has long been a hurdle," he said. Vendease has learned to read the pulse of the market, streamline inventory, predict demand, and work closely with suppliers to shrink food waste to less than 0.2%. Through volume-tiered pricing, the company encourages bulk purchasing, which helps food businesses manage costs. For instance, one kilogram of tomatoes is 17% cheaper on Vendease's platform than in the open market.

The impact of these innovative solutions is significant. CitySubs, a food business that joined Vendease, was able to cut 23% of its procurement costs. On average, food businesses see at least a 10% reduction in procurement costs within just the first three months of using Vendease's services. The company has successfully moved 1.5 million metric tons of food by building strong relationships with a wide network of suppliers, negotiating better prices, and ensuring a stable, efficient procurement process.

However, despite the progress made by agritech startups, government intervention is critical to address the root causes of Nigeria's food inflation crisis. President Bola Tinubu's declaration of a state of emergency on food security has sparked hope, but more needs to be done. Ikegwuonu stresses the need for investment in large-scale infrastructure, especially in irrigation, to allow smallholder farmers to practice year-round agriculture. He also points out the need for subsidies on high-quality seeds and fertilizer support to directly impact the quality of harvests.

The challenges facing Nigeria's agricultural sector are not unique to the country. Africa as a whole struggles with a fractured agricultural value chain, with nearly 40% of food going to waste before it ever reaches anyone's table. Despite holding 65% of the world's arable land, hunger and chronic malnutrition remain rampant. The continent requires significant investment in agritech to unlock its full potential.

Unfortunately, funding for agritech in Africa is woefully inadequate. While $16.8 billion was raised globally for agritech in 2023, Africa only received $275 million, amounting to just 1.6% of the global funding. Since 2014, Africa has raised $2.4 billion in agritech funding, but by 2024, only $157 million had come in. The lack of investment in Nigeria is a worrying indicator of the overall health of African agrifoodtech.

Despite the challenges, agritech startups like ColdHubs and Vendease carry the promise of transforming Nigeria's food systems and unlocking a brighter economic future. Their innovative solutions are a beacon of hope in a sector plagued by inefficiency and waste. As the Nigerian government and international investors take note, the potential for growth and transformation becomes increasingly clear.