Frozen Food Vendors Decry Poor Electricity Supply, Fuel Price Hike

News in brief:

-Frozen food traders in Lagos say unreliable electricity and high fuel prices are raising costs and reducing customer demand.

-Some vendors are scaling down operations, sharing cold-room storage or temporarily suspending their businesses.

Frozen food vendors in Lagos have raised concerns over the impact of unstable electricity supply and rising fuel prices on their businesses.

The traders, who spoke in separate interviews with the News Agency of Nigeria, said the situation had significantly increased operating costs while reducing customer patronage.

Frozen food businesses depend heavily on constant electricity to preserve fresh food products such as chicken, turkey and fish. However, irregular power supply has forced many traders to rely on generators, increasing their fuel expenses.

Power Generation Challenges Affect Businesses

Reports indicate that the country has experienced a drop in electricity generation due to insufficient gas supply.

Nigeria’s power sector relies largely on gas-fired plants, which have recently been affected by disruptions linked to pipeline maintenance and liquidity challenges in the energy sector.

The situation has further worsened the electricity supply for businesses that depend on refrigeration and cold storage to preserve perishable goods.

Traders Adjust Prices to Survive

A frozen food trader, Chika Oluehi, owner of Chika Frozen Foods in the Ijora-Olopa area, said he now factors electricity and fuel costs into product pricing to remain in business. According to him, the price of frozen products has risen significantly.

He explained that a carton of turkey that previously sold for about ₦85,000 now costs between ₦105,000 and ₦110,000, while chicken prices have increased from between ₦39,000 and ₦41,000 to about ₦46,000. Oluehi noted that traders must carefully calculate profit margins to avoid losses.

The vendor added that storage capacity plays a major role in how traders cope with electricity disruptions.

He explained that although generators are used when electricity is unavailable, they do not always provide sufficient power to maintain optimal freezer conditions.

He said he had also explored alternative energy options, including solar-powered freezers, to minimise losses.

However, he noted that solar systems still depend partly on electricity and therefore do not completely solve the problem.

Some Traders Suspend Operations

Another trader, Mojisola Kazeem of MJ Frozen Foods in Surulere, said she had temporarily halted her frozen food business due to the high cost of fuel and electricity. She explained that maintaining frozen products had become too expensive under the current energy conditions.

Similarly, a fish seller in Mushin, Bose Adeyemi, said she had reduced the quantity of fish she purchases to minimise losses. According to her, stocking large quantities is risky without reliable electricity because products can easily spoil.

Traders Share Cold-Room Storage

A cold-room operator in Agege, Sulaiman Adebayo, said many traders now share cold-room facilities to reduce electricity and generator costs.

However, he noted that cold-room operators have also increased storage charges due to rising fuel prices.

The electricity challenge is also affecting other small businesses that depend on refrigeration.

A soft drink seller at Yaba Market, Yetunde Afolabi, said poor electricity supply had affected her sales because customers prefer chilled beverages. She explained that drinks quickly become warm when there is no electricity, discouraging customers from buying.

According to her, running a generator all day is not sustainable due to high fuel costs, leaving traders to absorb the financial losses.