Operators of frozen food businesses in Lagos spend up to N2.2m switching solar power as unreliable electricity threatens their stock and profits. The frozen food business in Nigeria has recorded booming growth. For traders in the sector, keeping freezers running is not a matter of convenience but a basic requirement for staying in business.
However, as electricity supply becomes unreliable and the cost of petrol continues to rise, some operators are being forced to invest millions of naira in solar power to protect their businesses.
For players who depend on constant refrigeration, prolonged power outages can quickly translate into spoiled chicken, fish and other frozen products, turning what should be a profitable business into a source of mounting losses.
One frozen-food trader, Chichi Eze operating around Ojo LGA said electricity supply had become so unreliable that the business could sometimes go one or two weeks without power.
The trader said the business previously depended heavily on a petrol-powered generator, spending between N7,000 – N10,000 daily on fuel to keep operations running.
But with the cost of powering the generator becoming increasingly difficult to sustain, the trader invested about N2.2 million in solar power.
The investment represents a major upfront cost for a small business, but the trader said the alternative, continuing to depend on expensive petrol and an unreliable grid, was becoming increasingly burdensome.
At N7,000 a day, the trader’s stated fuel expense amounts to about N210,000 a month, or roughly N2.55 million annually, if maintained every day.
For another trader, Ife Adeoye, the problem went beyond the cost of electricity. Operating a frozen-food business in a residential area, she said frequent power outages meant some of her products spoiled before they could be sold.
The losses, she said, at times became greater than the profit from the business, leaving her frustrated and emotionally drained.
With the business becoming increasingly difficult to sustain, she eventually installed solar power.
The switch has since improved the operation of the business, she said, adding that the availability of more reliable power has also helped attract more customers.
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For Amaka Allen, who has been in the frozen-food business for more than 10 years, the deterioration has been gradual.
She recalled that the business environment was better when she started, but conditions continued to worsen over the years as operating costs increased.
This year, she said, the pressure became particularly difficult to manage. The rising cost of petrol, food and other business inputs eventually forced her to seek an alternative to generator power.
She invested about N2 million in solar, saying the move has made it easier to manage her operations and given her greater peace of mind.
Another trader said unreliable electricity and expensive petrol were the main challenges confronting the business.
“Managing the petrol is quite costly, but as the cost became higher, I was forced to move to solar installation,” the trader said.
Since installing solar, the trader said, the business has enjoyed greater stability and “peace of mind.”
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A business survival strategy
For these operators, the decision to invest in solar is less about embracing a new technology and more about protecting their businesses from two interconnected pressures: an unreliable electricity supply and the rising cost of alternative power.
Unlike businesses that can temporarily suspend operations during a blackout, frozen-food sellers face an additional risk.
Their merchandise is perishable, meaning prolonged loss of power can directly destroy the value of their inventory.
That makes energy reliability a business-cost issue as much as an electricity issue.
The experiences of the traders also highlight the difficult calculation facing small businesses: whether to continue spending daily on petrol-powered generators or make a large one-off investment in solar and batteries.
For traders who can raise the capital, solar offers the prospect of reducing dependence on petrol and providing more predictable power for refrigeration.
For them, Nigeria’s power crisis is therefore creating a difficult choice: keep paying increasingly expensive generator costs, risk losing frozen stock during prolonged outages, or find millions of naira to invest in an alternative energy system.
But the N2 million and N2.2 million investments cited by the traders also show the financial barrier confronting smaller operators who may not have sufficient capital to make the transition.
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