Nigeria’s cocoa industry is growing rapidly, with prices soaring and exports increasing significantly. This sector is crucial for diversifying the country’s economy beyond oil, as global demand for cocoa is on the rise. Strategic investments are being made to enhance production efficiency and sustainability, creating opportunities for local farmers and the potential for cocoa to surpass oil revenue in the coming years.
Nigeria’s cocoa industry is witnessing significant growth, marked by a remarkable increase in prices and exports, positioning itself as a vital contributor to the nation’s economic diversification efforts beyond oil. As global demand for cocoa surges and investments increase, the sector is poised to provide new revenue streams while helping Nigeria reclaim its status in the international cocoa market.
The price of cocoa in Nigeria experienced a staggering increase of over 700% from January 2023 to December 2024, reaching a peak of ₦15 million (approximately US$10,000) per tonne. This surge is attributed to a combination of global supply shortages, rising demand from European and Asian markets, and fluctuations in currency. Such developments indicate a flourishing market according to the Cocoa Research Institute of Nigeria (CRIN).
Financial experts, like Oluwatobi Falegan, assert that the transformations within the cocoa sector could catalyze demand for other agricultural products, enhancing the overall agricultural framework. Historically an agricultural powerhouse, Nigeria could utilize the momentum from cocoa to bolster the cultivation and export of other commodities, thereby solidifying agriculture’s role in the nation’s economic diversification.
Recently, British International Investment (BII) partnered with the Johnvents Group to inject a substantial US$40.5 million into Nigeria’s cocoa sector. This funding aims to enhance production efficiency and support sustainability initiatives. Benson Adenuga, BII’s Nigeria Office director, emphasized the positive implications for local farmers as well as the overall trade balance and competitiveness of Nigeria in global markets.
Cocoa ranks among Nigeria’s foremost non-oil exports, primarily cultivated by over 300,000 smallholder farmers in the southern regions. Despite being the world’s seventh-largest producer, yielding around 270,000 metric tons annually, Nigeria still predominantly exports raw cocoa. Notably, while global processing allows significant value capture, Africa largely misses out on this added value, with Nigeria exporting approximately 90% of its cocoa as unprocessed beans.
Market disruptions in Côte d’Ivoire and Ghana have further facilitated increased cocoa exports from Nigeria, bolstering its position in international trade. According to the National Bureau of Statistics (NBS) data for 2025, cocoa constituted over 7% of total agricultural exports, featuring prominently in key markets such as the Netherlands and Germany. Furthermore, non-oil sectors are gaining prominence, with agriculture accounting for nearly 26% of Nigeria’s GDP.
Dominic Joshua, founder of Cultivate Africa, remarked that if current trends persist, cocoa could surpass oil revenues within the next decade. Similarly, Falegan pointed out the importance of adhering to EU quality standards in cocoa production, which could bolster other commodities as well, encouraging sustainable farming practices and improved export procedures.
The success of the cocoa industry may inspire governmental support for broader agricultural initiatives, encompassing subsidized inputs and enhanced logistics for various agricultural products, thereby setting the stage for Nigeria’s agricultural renaissance.
In conclusion, Nigeria’s cocoa sector is experiencing an unprecedented transformation characterized by soaring prices and increased investor interest. This development not only promises economic diversification but also positions cocoa as a leading export commodity, with the potential to surpass oil revenues in the future. Continued investment and adherence to quality standards will be crucial for maximizing the sector’s growth and benefit to local farmers and the nation’s economy.
Original Source: www.independent.co.ug
