In the first quarter of 2024, Nigeria’s cocoa exports witnessed an extraordinary 304% increase, driven by rising global demand and the depreciation of the naira. Data from the National Bureau of Statistics (NBS) reveals that cocoa exports reached N438.7 billion, making up 42.4% of the nation’s N1.04 trillion in agricultural exports. This marks a substantial leap from the N108.6 billion recorded during the same period in 2023.
The price of cocoa in Nigeria also soared by over 567% in Q1 2024, exceeding N12 million per metric ton for the first time. This historic price surge was fueled by supply deficits from Ivory Coast and Ghana, two of the world’s leading cocoa producers, which disrupted the global market.
The rise in cocoa prices has encouraged Nigerian farmers to rejuvenate old plantations and invest in high-yield seedlings, expanding their cultivation areas to capitalize on the booming market. Adeola Adegoke, National President of the Cocoa Farmers Association of Nigeria, expressed optimism about the industry’s growth. “If governments and the private sector remain focused on increasing and decentralizing cocoa production, Nigeria could produce about 500,000 to 600,000 metric tons,” Adegoke said.
Despite this revenue surge, production levels remain stagnant at around 280,000 metric tons, according to Mufutua Abolarinwa, National President of the Cocoa Association of Nigeria (CAN). The rise in export revenue has been largely attributed to the favorable dollar exchange rate rather than increased production.
Nigeria, currently the world’s fourth-largest cocoa producer, ranks just behind Ivory Coast, Indonesia, and Ghana, and stands as the third-largest cocoa exporter globally.
While the current cocoa price rally—peaking at $12,000 per metric ton in April 2024—has driven up local cocoa prices and profits for farmers, experts warn against over-reliance on the boom. Oba Dokun Thompson, the Oloni Eti-Oni and chairman of Eti-Oni Development Group, cautioned that the price rally is unsustainable and urged the government to focus on innovation and value addition in the cocoa sector.
As Nigeria navigates this surge in the cocoa market, the government and private sector must seize the opportunity to invest in long-term growth strategies, ensuring sustainable benefits for the economy and the nation’s cocoa farmers.
