Nigeria eyes cocoa boom amid price surge

Nigeria  is stepping up efforts to transform its cocoa industry, aiming to challenge global leaders Cote d’Ivoire and Ghana. This comes as soaring global prices spark renewed investor interest in the sector, according to a recent AFP report.

With cocoa prices reaching a historic peak of $12,000 per tonne in December 2024, Nigeria sees an opportunity to revive its once-thriving cocoa sector. The country is already the world’s seventh-largest cocoa producer, but now it is setting its sights higher. The Nigerian government has announced an ambitious goal to ramp up production to 500,000 tonnes by the 2024-2025 season—a move that would place it fourth globally, behind Cote d’Ivoire, Ghana, and Indonesia.

While Nigeria’s oil-dependent economy has struggled to diversify, cocoa may offer a promising new path. Patrick Adebola, Executive Director of the Cocoa Research Institute of Nigeria, told AFP that farmers are experiencing unprecedented benefits from the global price surge.

‘The farmers have never had it so good,’ Adebola said.

A surge in investment and renewed interest

Over a dozen Nigerian firms have shown interest in expanding or investing in cocoa production this year, according to AFP. International stakeholders are also paying attention. The UK government’s development finance arm recently invested $40.5 million in Johnvents, a Nigerian agribusiness company with deep ties to the cocoa sector.

Nigeria produced 280,000 tonnes of cocoa in 2023, according to the UN Food and Agriculture Organisation (FAO). Achieving the government’s 500,000-tonne target would mark a significant leap, although Adebola remains cautious about meeting this goal in the current season.

Still, he believes increased efforts to rehabilitate old plantations and establish new ones could help Nigeria catch up with global competitors in the near future.

Cote d’Ivoire and Ghana face setbacks, creating openings

Nigeria’s push comes at a time when Cote d’Ivoire and Ghana, the world’s largest cocoa producers, are grappling with climate change impacts and crop disease. Poor harvests in both countries last year have contributed to global supply shortages, driving prices to unprecedented levels.

Despite the setbacks faced by its neighbours, Nigeria’s cocoa has, so far, largely avoided major climate-related damage, providing a potential edge in the global market. However, experts warn that expansion must be managed carefully to avoid long-term environmental harm.

Challenges for small-scale farmers

Most of Nigeria’s cocoa is grown by smallholder farmers, who face significant challenges in scaling their operations. Peter Okunde, a farmer in Ogun state, told AFP he lacks both the capital and land to expand his four-hectare plantation.

‘Land is the major instrument farmers need… and the money to develop it,’ Okunde said.

Yet others, like John Alamu, Group Managing Director of Johnvents, believe the issue is more about support systems than land scarcity. Speaking to CNBC Africa, Alamu noted that Nigeria already dedicates 1.4 million hectares to cocoa farming, more than Ghana’s 1.1 million hectares.

‘Governments elsewhere have supported farmers with seedlings, training, and sustainable agriculture practices. These are key to reclaiming Nigeria’s leadership in cocoa,’ Alamu said.
Sustainability concerns as Nigeria expands cocoa cultivation
While expanding cocoa production offers economic potential, experts caution about the environmental risks of monocrop farming. Nigeria’s National Cocoa Management Committee, established in 2022, has taken steps to regulate the previously unregulated sector.

However, recent agriculture modernisation efforts have encouraged “full-sun” monocrop plantations, which focus exclusively on cocoa without integrating shade trees or companion crops. A recent study published in Agroforestry Systems warns that this approach may reduce biodiversity and pose sustainability challenges in the long run.

Looking ahead:

Nigeria’s cocoa ambitions
Despite the obstacles, Nigeria’s cocoa sector is at a pivotal moment. Industry experts, government officials, and investors see the current price surge as a unique chance to reposition Nigeria as a global cocoa leader.

But achieving this vision will require holistic strategies, including investment in sustainability, infrastructure, and farmer support. As global cocoa prices remain above $8,000 per tonne, there’s a strong incentive for Nigeria to capitalise on its opportunity—provided it can navigate the complex challenges ahead.

africabriefing.com