How to Start Cold Room Business in Nigeria

Interested in starting a cold room business in Nigeria? If YES, here is how to start a cold room business checklist with no money and no experience.

Starting a Cold Room Business In Nigeria

Planning a cold room business in Nigeria is usually for two major investment purposes; ice-block making and frozen food business. Ice-blocks are sold in solid bars to drinks vendors as well as to caterers and event organizers for the cooling of drinks.

Frozen food business ideas involve the preservation of seafood and poultry products, beef, and fruits. Popular food items that move fast in the frozen food business include chicken, turkey, fish, meat, prawns, shrimps, etc.

A cold room is designed in form of a large container-like freezer used for the commercial purpose of preservation under low temperature. Cold rooms can be imported or locally constructed here in Nigeria.

Locally manufactured cold rooms are very popular because of their cost of acquisition and assembly as well as their durability. If you are interested in investing in cold storage, the first step is to rent or purchase a space that is conspicuous and adequate.

Common machines/equipment needed for cold room business include;

—–» aluminum casing
—–» freezing compartment
—–» power supply (generator)
—–» stabilizer
—–» ice-block molding container
—–» deep freezers

The type, brand, and capacity of the cold room to be installed depend solely on your intended size of production and finance to invest in the cold room business. Most businesses use locally fabricated cold rooms. Bigger companies have the financial strength to buy imported ones.

From experience, high-quality cold rooms are more durable and easier to maintain. There are basically two types of locally fabricated ice-block-making machines. The average locally made ice-block machine usually has issues with the salt solution being used as the refrigerant so many cold room manufacturers in Nigeria have done away with this option.

You can buy newer designs from cold room manufacturers which resemble deep freezers that you just bag water with cellophane and get your bars of ice block turned out within three hours.

Model A

  • 30 ice blocks in 12hours
  • 5,000 watts stabilizer (185k)
  • 7.5kva diesel generator (N160k to N190k)

Model B

  • 100 ice-blocks in 12 hours
  • Two 5,000 Watts stabilizer (390k)
  • 15 kva diesel generator (N350k-380k)

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12 hours is the maximum time required for the first batch of ice-block to be produced. For subsequent batches, the machine would only need 9-10hrs for ice block production. An imported ice-block-making machine from Germany with the capacity of producing up to 50 blocks sells at 2.1 million Naira.

It has an inbuilt compressor so there is no need for an external stabilizer. Cold room owners also make money from rentals.

Here is a list of daily rental fees for cold rooms in Lagos and Ibadan.

  • bag of fish– N600
  • carton of chicken and turkey- N1,000

Prices And Capacity Of Cold Rooms In Nigeria – Buying And Installation

3 Tonnes Cold Room

capacity – 200 bags of fish or 3000Kg of poultry products or meat.
price – #850,000.
power – 35kva generator (N2.2million)

5 Tonnes Cold Room

capacity – 500 bags of fish or 5000Kg of poultry products or livestock.
price – #1.6 million.
power – 50kva generator (N3.4million)

10 Tonnes Cold Room

capacity – half a container of fish more than 10,000Kg of poultry products or meat.
price – #2.1million.
power – 75kva generator (N4.1million)

How Lucrative Is Cold Room Business In Nigeria?

How Profitable Is Cold Room Business In Nigeria? There is an enormous financial prospect in starting a cold room business in Nigeria.

To succeed in the cold room business in Lagos and other parts of Nigeria, you should focus on food items with steady demand and adjust your business strategy with the seasons. Ice-blocks sell faster during the dry season while the sales of chicken, turkey, and meat are unending shooting up during festive periods.

Make sure your cold room is installed in a location with a stable power supply so that you can make higher returns on your investment by reducing the cost of diesel used to fuel generators.

5 thoughts on “How to Start Cold Room Business in Nigeria”

  1. I am interested in the business but first, I would like you to link me to an expert in this business who can coach me.

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