Nigeria’s cocoa industry is thriving as global prices soar, with a reported increase of over 700% since January 2023. Major investments are supporting this growth, aiming to enhance sustainability and production. The industry plays a crucial role in Nigeria’s economic diversification beyond oil, potentially generating significant revenue for farmers and the economy.
Nigeria’s cocoa industry is rapidly transforming into a pivotal force for economic diversification, presenting significant opportunities for farmers and investors alike. The surge in global cocoa prices has reached ₦15 million (about US$10,000) per tonne, marking a 700% increase since January 2023. This uptick is influenced by global supply shortages and rising demand from markets in Europe and Asia, as highlighted by the Cocoa Research Institute of Nigeria.
Oluwatobi Falegan, a financial professional, emphasizes the cocoa industry’s potential to invigorate Nigeria’s agricultural sector and broader economy. The surge in cocoa’s success could stimulate demand for other agricultural commodities, thereby facilitating the country’s economic diversification efforts. He points to other crops like cashews and sesame seeds that stand to benefit from this momentum.
In a recent initiative, British International Investment (BII) announced a US$40.5 million investment to enhance cocoa production efficiency and sustainability. This collaboration with the Johnvents Group aims to bolster the livelihood of local farmers and improve Nigeria’s trade balance and competitiveness through increased cocoa exports, as noted by BII’s Nigeria office director, Benson Adenuga.
With over 300,000 small-scale farmers cultivating cocoa in Nigeria, the country ranks as the seventh-largest cocoa producer globally, yielding approximately 270,000 metric tons annually. However, it lags behind Côte d’Ivoire and Ghana, which dominate cocoa production and exports, primarily shipping raw beans without processing, thus missing out on higher revenue from processed cocoa products.
Recent data indicates that Nigeria’s cocoa accounted for 7.12% of total agricultural exports, making it the leading crop, with exports predominantly directed to the Netherlands, Belgium, Malaysia, and Germany. Notably, the oil sector’s contribution to GDP fell below 5%, highlighting the growing significance of non-oil sectors like agriculture, which comprised 25.59% of the GDP in Q4 2024.
Nigeria’s cocoa industry is experiencing a significant transformation, unlocking economic opportunities that may rival traditional oil revenues. With substantial investment inflow, rising prices, and increasing global demand, cocoa is positioning itself as a vital component in Nigeria’s strategy for economic diversification. The success of cocoa could serve as a catalyst for broader agricultural advancement and sustainability strategies.
Original Source: www.independent.co.ug
