Nigeria is positioning itself as a key player in the global cocoa market, leveraging the recent surge in cocoa prices to boost its agricultural sector. With global cocoa prices soaring to an unprecedented $12,000 per tonne in December 2023, investors are increasingly turning their attention to Nigeria’s cocoa industry. The country seeks to rival top producers such as Ivory Coast and Ghana, both of which have experienced significant setbacks due to climate change and crop diseases.
Cocoa Price Surge Sparks Renewed Interest in Nigeria’s Cocoa Industry
Historically reliant on oil, Nigeria has struggled to diversify its economy. However, the recent spike in cocoa prices has sparked renewed enthusiasm among farmers and investors. According to Patrick Adebola, Executive Director at the Cocoa Research Institute of Nigeria, farmers are witnessing some of the best profit margins in recent history.
More than a dozen local companies have expressed interest in expanding their cocoa production. Additionally, the British government’s development finance arm has invested $40.5 million in Nigerian agribusiness giant Johnvents, highlighting growing international confidence in Nigeria’s cocoa potential.
Nigeria’s Cocoa Production Growth and Future Prospects
As the seventh-largest cocoa producer in the world, Nigeria produced over 280,000 tonnes of cocoa beans in 2023, according to data from the United Nations Food and Agriculture Organization (FAO). In an ambitious move, the Nigerian government has set a target of 500,000 tonnes for the 2024-2025 season, aiming to secure the fourth spot behind Ivory Coast, Ghana, and Indonesia.
While reaching this target within a year remains a challenge, Adebola believes that with increased investment in rehabilitating old plantations and establishing new ones, Nigeria could achieve this milestone in the near future.
Unlike Ghana and Ivory Coast, where cocoa prices are regulated, Nigerian farmers are fully exposed to market fluctuations. Cocoa futures prices, although slightly lower than the December peak, remain significantly high, trading above $8,000 per tonne—far above the typical $2,000-$3,000 range seen in previous years.
According to Comrade Adeola Adegoke, President of the Cocoa Farmers Association of Nigeria, many individuals are now entering cocoa farming at various levels to take advantage of the high market prices.
The Shift to Full-Sun Cocoa Farming and Environmental Concerns
Nigeria’s cocoa farms have largely been spared from extreme climate change effects, unlike those in Ivory Coast and Ghana. However, the country’s efforts to increase production may pose environmental risks. The government has strengthened oversight through the National Cocoa Management Committee, established in 2022 to regulate the sector and support farmers.
A key concern is the promotion of ‘full-sun’ monocrop plantations, where cocoa is grown without shade trees or companion crops. A recent study published in Agroforestry Systems highlights that while full-sun farming increases yield, it may compromise soil health, biodiversity, and long-term sustainability. Experts suggest that integrating agroforestry practices could enhance environmental resilience while ensuring stable cocoa production.
Challenges in Scaling Up Cocoa Production in Nigeria
Despite the promising outlook, scaling up cocoa production in Nigeria faces several hurdles. Small-scale farmers, who form the backbone of the industry, often struggle with limited access to land and funding. Peter Okunde, a cocoa farmer in Ogun State, emphasized that securing land and financial support remains a major challenge for expansion.
However, John Alamu, Group Managing Director of Johnvents, argues that land availability is not the primary issue. Speaking to CNBC Africa, he noted that Nigeria has 1.4 million hectares dedicated to cocoa cultivation—exceeding Ghana’s 1.1 million hectares. He emphasized that providing farmers with seedlings, training in sustainable farming practices, and access to funding is crucial for Nigeria to reclaim its leadership position in the global cocoa industry.
Conclusion: Nigeria’s Cocoa Industry on the Rise
As global cocoa prices remain high, Nigeria stands at a pivotal moment to strengthen its cocoa sector. Strategic investments, modernized farming practices, and government support could position the country as a top-tier cocoa producer. However, balancing economic gains with environmental sustainability will be key to long-term success.
UN Food and Agriculture Organization
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