As global cocoa prices hit record highs, Nigeria is emerging as a potential challenger to top producers Ivory Coast and Ghana, whose crops have been severely impacted by climate change and disease. With cocoa prices reaching an unprecedented $12,000 per ton in December 2024, investors are turning their attention to Nigeria, hoping to transform the country into a major player in the global cocoa market.
Nigeria, the world’s seventh-largest cocoa producer, yielded over 280,000 tons of cocoa beans in 2023, according to the United Nations Food and Agriculture Organization (FAO). The Nigerian government has set an ambitious target of producing 500,000 tons for the 2024-2025 season, which would propel the country to fourth place behind Ivory Coast, Ghana, and Indonesia.
A Golden Opportunity for Nigerian Farmers
“The farmers have never had it so good,” said Patrick Adebola, executive director of the Cocoa Research Institute of Nigeria (CRIN), in an interview with Agence France-Presse (AFP). The surge in cocoa prices has sparked a wave of interest in the sector, with more than a dozen local firms planning to invest in or expand their cocoa production this year.
International investors are also taking notice. The British government’s development finance arm recently invested $40.5 million in Johnvents, a Nigerian agribusiness company, signalling growing confidence in the country’s cocoa industry.
While Adebola acknowledges that Nigeria may not meet its 500,000-ton target this season, he believes it is achievable within the next few years. “There is rising interest in rehabilitating old plantations or establishing new ones,” he said.
Challenges and Opportunities
Unlike Ivory Coast and Ghana, where cocoa prices are regulated, Nigerian growers are more exposed to the volatility of the global market. This has created both opportunities and challenges for local farmers.
Comrade Adeola Adegoke, president of the **Cocoa Farmers Association of Nigeria, noted that the high prices have encouraged more individuals to enter cocoa production. “Individuals are going into cocoa production at every level … to make sure they also enjoy the current price,” he said.
However, scaling up production remains a significant hurdle. Much of Nigeria’s cocoa is grown by small-scale farmers who lack the resources to expand. Peter Okunde, a cocoa farmer in Ogun State, told AFP that he lacks both the capital and land to grow his 4-hectare (10-acre) plantation. “Land is the major instrument farmers need … and the money to develop it,” said the 49-year-old.
Environmental Concerns
While Nigeria’s cocoa crops have so far been spared the worst effects of climate change, expanding production could pose environmental risks. The government has established the National Cocoa Management Committee to regulate the industry and support farmers, but modernisation efforts have encouraged the development of “full-sun” monocrop plantations.
A recent study in the journal Agroforestry Systems warned that monocrop farming, which focuses solely on cocoa production without companion plants or trees, is less sustainable than traditional methods that promote biodiversity and environmental health.
A Path Forward
Despite these challenges, industry leaders remain optimistic. John Alamu, group managing director of Johnvents, emphasised that Nigeria has the potential to become a global leader in cocoa production. “The problem is not land area,” he told CNBC Africa, noting that Nigeria has 1.4 million hectares dedicated to cocoa cultivation, compared to Ghana’s 1.1 million hectares.
Alamu called for a more holistic approach, including the provision of seedlings, training on sustainable farming practices, and government support. “These are key things that will be responsible for taking Nigeria back to its leadership position,” he said.
As global demand for cocoa continues to rise, Nigeria’s cocoa sector stands at a crossroads. With the right investments and policies, the country could not only boost its economy but also challenge the dominance of Ivory Coast and Ghana in the global cocoa market.
