The Nigerian cocoa industry is basking in newfound glory, with a significant surge in global demand and profitability. Currently valued at over $6 billion, the country’s annual cocoa output of 250,000 tonnes has positioned Nigeria as a rising contender in the international cocoa market.
Data from the National Bureau of Statistics (NBS) revealed that in the first half of 2024 alone, Nigerian cocoa farmers and exporters earned a staggering N644 billion from cocoa bean exports, marking a 298 percent increase compared to N161.8 billion in the same period of 2023. This dramatic growth coincided with a historic spike in global cocoa prices, which soared to $10,000 per tonne in November.
The global price hike is largely attributed to poor weather conditions in major cocoa-producing nations like Ivory Coast and Ghana, which resulted in supply shortages. For Nigerian farmers, the devaluation of the naira, dropping to N1,675 against the dollar, further bolstered their competitive edge in the global market.
Despite this recent success, Nigeria remains a minor player in the cocoa industry, contributing just 5% to global supply and ranking sixth among the world's top producers. Stakeholders argue that revitalising the cocoa sector could unlock Nigeria’s economic potential, as highlighted at the 25th Anniversary of Starlink Global & Ideal Ltd., a leading agricultural export company.
Adeyemi Adeniji, Starlink's CEO, urged the government to implement policies promoting backward integration and industrialisation within the cocoa value chain. “The cocoa market is worth over $6 billion, and with current prices, Nigeria could generate $25 billion annually,” Adeniji noted. The company is taking proactive steps, including acquiring Nigeria’s largest cocoa processing facility and managing 25,000 hectares of farmland in collaboration with Odu’a Investment Group.
At the event, Bimbo Ashiru, chairman of Odu’a Investment, emphasised the need to diversify Nigeria’s economy by leveraging agriculture. Plans to establish an agro-industrial hub focused on cocoa and other high-value crops in the Southwest were outlined, aimed at reducing Nigeria’s reliance on oil.
Similarly, at the Calabar 2024 cocoa event in Cross River State, stakeholders identified critical challenges hindering the industry, such as low local consumption, inadequate data, and insufficient farmer knowledge of international regulations. Recommendations included fostering youth involvement, increasing local processing, and adopting traceability systems.
The ongoing rise in global cocoa prices, combined with strategic investments and government support, presents Nigeria with a golden opportunity to reclaim its place as a global cocoa powerhouse. Stakeholders remain optimistic that addressing key challenges and embracing innovation will lead to a thriving and sustainable cocoa industry.
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