FoodCourt’s shutdown is a reminder of how hard the food business really is

In the same week that Chowdeck’s CEO announced that the company had crossed ₦1.5 billion worth of groceries delivered in a single month, FoodCourt, one of Nigeria’s best-known food startups and a fellow Y Combinator-backed company, announced that it was temporarily suspending operations. Months of unpaid salaries and outstanding debts to vendors had forced the decision.

It is tempting to see these as two unrelated stories, but they are not. Together, they offer a reminder of the realities of building a food tech business in Nigeria. FoodCourt’s CEO, Henry Nneji, explained that the suspension was not driven by one event. Instead, it was the result of a combination of operational, organisational and working-capital pressures. But this wasn’t always the case. 

Back in 2024, FoodCourt was in a great place. It reportedly had over $4 million in annual recurring revenue, was profitable and planning expansions into Abuja and outside Africa; it also launched additional food brands to serve different customer segments. On paper, this looked like a company that had figured out how to survive in one of Nigeria’s toughest industries.

Last updated: July 6, 2026