Nigeria aims to become the world’s largest cocoa exporter, focusing on improving production, accessing better farming techniques, and bolstering private sector involvement. By tackling agricultural challenges and fostering infrastructure development, Nigeria can significantly enhance its cocoa output, engage in global markets, and improve economic growth through this key non-oil export.
Nigeria has the potential to become the world’s largest exporter of cocoa beans in the next three to five years, but this ambition requires addressing several critical questions. Key considerations include identifying current top exporters, such as Ivory Coast, which controls 45% of the global market, and determining the necessary production volume and viable farmlands in Nigeria. Additionally, factors like research and development, seed quality, pest control, and competition must be assessed to ensure efficiency and yield optimization.
Ivory Coast peaked with 2,248,000 tonnes of cocoa production in 2020-2021 and delivered 1,800,000 tonnes in the 2022-2023 season, sustaining a 40% contribution to its national exports. It currently utilizes over 4.77 million hectares for cocoa cultivation but faces challenges like aging trees, pests, and labor issues. Nigeria, however, has the opportunity to significantly increase its cocoa farming as it currently taps into less than 20% of its available farmland suited for cocoa production, particularly in states such as Ondo, Cross Rivers, and Ogun.
The low utilization of farmland is striking, especially in comparison to the intensive agricultural practices observed in Northern Nigeria. Southern states primarily focus on more sedentary employment, leading to undercultivation of the land, characterized by abandoned fields and dense forests. While private sector engagement in cocoa farming is increasing, it requires government support—especially in improving infrastructure and providing better access to resources for farmers.
Investing in road infrastructure to streamline access to cocoa-producing regions is crucial for boosting production and export efficiency. The government should also explore updating farm settlement initiatives and consider inter-ministerial collaboration to identify and develop suitable land for cocoa. Financial institutions should design innovative funding solutions for perennial crop farmers to reduce the barriers to capital access and ensure sustainable cocoa cultivation.
Cocoa production also presents an opportunity to address Nigeria’s unemployment crisis, with successful cocoa trade historically supporting many livelihoods. Given the rise in cocoa prices on international markets, Nigeria’s focus on cocoa as a primary non-oil export could yield substantial foreign exchange gains. With a favorable market environment and strategic governmental support, Nigeria can advance its position within the global cocoa industry over the next few years.
Nigeria has the opportunity to become a leading cocoa exporter by leveraging its agricultural potential, enhancing infrastructure, and fostering private sector participation. Addressing current agricultural challenges and engaging with financial institutions will be critical to revamping cocoa production. With cocoa being a crucial economic contributor, strategic actions can help Nigeria capitalize on its strengths and increase foreign exchange earnings while tackling unemployment effectively.
Original Source: businessday.ng
