Nigeria’s cocoa industry has seen impressive growth in 2024, with farmers and exporters earning $845 million from cocoa exports in the first half of the year. This marks a staggering 298% increase compared to $212 million during the same period in 2023, according to the National Bureau of Statistics.
The surge is largely attributed to a combination of factors, including a dramatic rise in cocoa prices, which have tripled since the start of the year. On November 27, prices reached an all-time high of $8,246 per tonne, driven in part by adverse weather conditions affecting major West African producers, Ivory Coast and Ghana. Nigerian farmers have benefited from these higher prices, alongside the depreciation of the naira, which hit an all-time low of $1 = ₦1,675.
Sayina Rima, a cocoa farmer in Ikom, South-South Nigeria, shared his optimism, stating that if the price rally continues and weather conditions remain favorable, export proceeds could exceed $1.3 billion by the end of 2024. He also highlighted how the price surge is attracting younger people to cocoa farming, addressing the challenges posed by an aging farmer population and underproductive trees.
Mufutau Abolarinwa, President of the Cocoa Association of Nigeria, confirmed that both farmers and exporters are benefitting from this price surge, with the current farm-gate price reaching $27,000. Abolarinwa anticipates a slight increase in production during the main-crop season, which runs from October to December and accounts for around 70% of Nigeria’s cocoa output.
Nigeria, currently the world’s fourth-largest cocoa producer, is hoping to boost its cocoa industry, which still faces significant challenges despite its growth potential. As Lawrence Afere, CEO of Springboard Farmers’ Co-operative, pointed out, the Nigerian government must move beyond rhetoric and provide concrete support to cocoa farmers to truly harness the industry’s potential.
Cocoa remains a vital cash crop for Nigeria, and its export success underscores the opportunity for Nigeria to boost its foreign exchange earnings. However, as experts agree, sustained government support is crucial to ensuring long-term growth and productivity in the sector.
