“More refrigeration would help reduce waste. But this hinges on more reliable and affordable energy – something that the government is trying to tackle by developing Nigeria’s vast gas resources, the biggest in Africa, in partnership with businesses like Shell.”
“Fresh food often goes to waste in Nigeria because of a lack of energy to power cold storage, while a shortage of affordable fertilizer limits good harvests. The country is working hard to tackle both challenges by developing more of its natural gas resources, and turning to the sun.”
Shola Ladoja grows lettuce, carrots and cucumbers on his farm outside Lagos, Nigeria’s biggest city. He battles the heat daily to make sure his produce doesn’t spoil before he can sell it.
“We all have the same complaint: the heat rots our fruit and vegetables,” says Shola. “Farmers have to sell what they pick within a couple of hours. It’s worse in some areas where market days are once a week. Farmers pick everything that’s ripe and sell it at the same time and place. This pushes prices down and there is so much waste.”
Temperatures that can often reach around 40°C make storing food a challenge for farmers, food shops and homes across Nigeria. Fridges and freezers for storing fresh produce need electricity to run, but, according to 2021 World Bank figures, more than 40% of the country’s population have no access to modern energy. Those with some access to it suffer regular power cuts because of the underdeveloped power network, which, understandably, the government is working to improve.
For millions of small farmers, the lack of refrigeration means lost harvests and a hand-to-mouth existence. Even in on-grid cities and towns, the absence of a reliable power supply means homes and grocery stores bin tonnes of spoiled food.
Shola Ladoja farms 2,600 hectares outside Lagos.
This waste is all the worse because millions of people in Nigeria, as in other West African countries, face hunger and malnutrition, according to the UN World Food Programme (WFP).
“The spiralling food security and nutrition situation in Western Africa is just heart-breaking,” Chris Nikoi, WFP Director for the region, has said. Causes include conflict, the impact of COVID-19, poor harvests, food waste and high food prices.
More refrigeration would help reduce waste. But this hinges on more reliable and affordable energy – something that the government is trying to tackle by developing Nigeria’s vast gas resources, the biggest in Africa, in partnership with businesses like Shell.
For people living in remote, off-grid communities, such as those in the Niger Delta, solar power could bring even faster benefits. “We need gas and solar because the farms are not near a grid. We need to solve the problem now, not wait for the gas to reach everyone,” says Shola.
Increasing Food Production: A lack of modern farming equipment and a shortage of affordable fertilizer limit Nigeria’s agricultural production, making it an importer of staple foods, such as rice, wheat, and sugar, according to the International Monetary Fund’s report in a 2023.
Again, developing more natural gas would help Nigeria boost its harvests because gas is used as a feedstock to produce fertilizers.
It would be recalled that in September 2022, the Shell Petroleum Development Company of Nigeria Limited (SPDC) and its joint-venture partners began supplying gas to Dangote Fertilizer Company, which according to reports, produces about 65% of Nigeria’s fertilizer. The gas comes from the Tunu gas field, which is part of SPDC-operated Southern Swamp Associated Gas Solutions project.
The central processing facility in Tunu. The gas-gathering project is part of the Southern Swamp Associated Gas Solutions.
Preserving food for distribution: While boosting food production would help Nigeria feed its people, preserving this food more effectively is also vital. In a 2020 report on Nigeria’s food security, the World Bank said that a reduction in food loss would help Nigeria increase the efficiency of its food system.
“Affordable and dependable gas-powered energy holds the potential to minimize waste and enhance food security,” says Ralph Gbobo, Managing Director of Shell Nigeria Gas Limited (SNG). “The benefits of using gas are evident across all types of businesses, especially those involved in converting fresh produce into non-perishable items for grocery stores or for transporting to regions with food scarcity.”
SNG, part of Shell Energy Nigeria, provides gas from a range of suppliers to industrial and commercial customers in three states. Almost a third of SNG’s customers belong to the food processing, packaging and agricultural sectors.
SNG is now expanding into five more states and is already building gas distribution infrastructure in two of them. Shell also offers commercial and industrial customers solar energy through Daystar Power, which Shell acquired in December 2022.
“Daystar intends to continue to grow its ability to offer power solutions to commercial clients that need refrigeration. Reliable, low-carbon and affordable energy for food businesses is vital for Nigeria,” says Belinda Ikazoboh, who heads Shell’s Emerging Markets Power business.
Solar offers hope for farmers. Gas benefits businesses on the grid, but many small Nigerian farmers live off the grid and away from a gas supply. Losing much of their harvest through a lack of refrigeration costs 90 million small farmers around 25% of their annual income, the World Bank’s same 2020 report says. To save their crops, they are fighting heat with the sun and turning to solar power.
All On, a not-for-profit company set up by Shell, has funded renewable energy start-ups in Nigeria since 2017. All On helps scale up these start-ups so that they can increasingly provide energy to communities, homes, farms and small businesses that are off the grid.
Back on Shola’s farm, solar panels now power a cold room for storing fresh fruit and vegetables. The panels were installed by a start-up, First Electric, which receives funding from All On.
“Whether energy comes from natural gas or solar, it is clear that both could play a major role in feeding Nigeria’s people by boosting secure supplies of food and preventing waste.”
Source: Shell Nigeria