₦airaland Forum

The Nigerian cocoa industry has experienced a recent surge in demand and profitability, with data indicating that the country’s annual cocoa volume of 250,000 tonnes is now valued at over $6 billion.

Adding to the cocoa industry’s sweet success, Nigerian cocoa farmers and exporters had a bountiful first half of 2024, earning an estimated N644 billion from the export of cocoa beans, according to data from the National Bureau of Statistics (NBS).

Nigeria’s cocoa exports saw a 298 percent growth in the first half of 2024, reaching N644 billion compared to N161.8 billion in the same period of 2023.

The surge in exports has been attributed to an increase in the price of the key ingredient in chocolate production. Prices have more than tripled since the start of the year, with a new historic high of $8,246 per tonne recorded on November 27, as reported by the International Cocoa Organisation (ICCO).

Poor weather conditions in the world’s top cocoa-producing nations, Ivory Coast and Ghana, have wreaked havoc on harvests, causing a shortage in cocoa supply.

However, in a silver lining moment for Nigerian farmers, their cocoa exports skyrocketed due to the devaluation of the Naira, which fell to as low as N1,675 against the US dollar, as reported by FMDQ. This devaluation made Nigerian cocoa exports relatively cheaper, giving farmers a lucrative edge in a cocoa market struck by scarcity.

Although the global cocoa market is currently riding a sweet wave for Nigerian farmers with prices reaching around $10,000 per tonne, the potential for Nigeria to benefit is not fully realised, as the country continues to be a minor player in the global cocoa arena. Despite once being the second-largest producer of the commodity, Nigeria has slipped to the sixth spot in the world rankings and currently contributes just five percent of the global cocoa supply.

Despite Nigeria’s diminished prominence in the cocoa production landscape, cocoa industry stakeholders continue to champion the pivotal role of cocoa in Nigeria’s economic diversification strategy.

This message was front and center at the 25th Anniversary and Awards Ceremony of Starlink Global & Ideal Ltd., a Lagos-based agricultural marketing company that specializes in the export of cocoa, cashew, sesame seeds, and other key agricultural products.

According to Adeyemi Adeniji, chief executive officer of Starlink, the cocoa industry holds the key to unlocking substantial economic growth for Nigeria.

Highlighting the significant potential of the cocoa sector, Adeniji urged the government to implement policies that encourage industrialisation via backward integration, enabling the country to capitalise on the cocoa value chain and enhance the sector’s impact on the Nigerian economy.

“The cocoa market, in terms of volume, is just about 250,000 tons, but in terms of value, it is about $6 billion or more, depending on the international market price.”

“Today, the price of cocoa has risen to $10,000 per tonne. This means Nigeria’s cocoa exports could generate $25 billion, underscoring the potential of the sector,” he noted.

Adeniji also disclosed that the company has collaborated with Odu’a Investment to manage 25,000 hectares of farmland across West Africa, in a visionary partnership aimed at unlocking the potential of agriculture in the region.

As part of this partnership, two pilot sites spanning 5,000 hectares each will be developed in the near term, with plans for further expansion over the next five years. Furthermore, Starlink has acquired Nigeria’s largest cocoa processing facility, which is slated to begin operations by April 2025.

Adeniji explained that with the acquisition of this state-of-the-art cocoa processing facility, Starlink is positioning itself to drive the cocoa value chain forward by producing finished products such as chocolate and cocoa drinks.

Also speaking at the event, Bimbo Ashiru, chairman of Odu’a Investment Group, underscored the need to diversify Nigeria’s economy away from its reliance on oil and toward agriculture as a core driver of growth.

Ashiru stressed the government’s commitment to making Nigeria a more attractive destination for investors, citing the minister of trade and investment’s efforts to improve the ease of doing business and attract more investment. The ultimate goal, he noted, is to generate more than a trillion dollars annually from agriculture.

Expanding on the government’s vision for the agricultural sector, Ashiru also detailed plans to establish an agro-industrial hub in the Southwest, with a focus on high-value cash crops such as cashew and cocoa.

The primary objective of the hub, he noted, is to create a value chain that will facilitate the production of raw materials and finished goods.

“The strategy is to make Nigeria non-oil dependent. We have so much in agriculture that leads to industrialisation. We have no business being an import-dependent economy. We should be exporting more, and the strategy is over a trillion dollars a year so that once we have that, we’ll be less dependent on oil.

“The point is this: as a country, Nigeria was the second largest exporter of cocoa in the world in the 70s. We went wrong when we found oil. But now we should go back to that basis and start doing that, and that is the focus, and that’s what we are looking at now in Nigeria,” the Odu’a Investment Group chairman stated.

The ongoing surge in global cocoa prices, coupled with investments in infrastructure and policy support, positions Nigeria as a key player in the global cocoa market. Stakeholders believe that tapping into agriculture’s full potential will not only diversify Nigeria’s economy but also strengthen the naira through increased foreign exchange earnings.

The Cocoa Farmers Association of Nigeria (CFAN) and other key stakeholders have also underscored the need for cooperation and collaboration in the country’s cocoa sector.

At the recent Calabar 2024 cocoa event in Cross River State, over 300 participants, primarily cocoa stakeholders from Nigeria’s cocoa-producing states, converged to identify the critical challenges confronting Nigeria’s cocoa industry.

Three key issues were identified as hindering the development and sustainability of the industry: low local consumption of cocoa products, inaccurate data on cocoa production and value chain, and inadequate knowledge among farmers about the European Union Delegated Regulation (EUDR), which outlines regulations related to cocoa cultivation, processing, and trade.

In a bid to safeguard the longevity and competitiveness of the cocoa industry, stakeholders at the event recognised the need to engage the youth in cocoa farming and processing through entrepreneurial endeavors.

They also committed to tackling the key issues confronting cocoa farmers in Nigeria, such as soil degradation, pest and disease infestations, the improper use of adulterated agrochemicals, inadequate access to cocoa policy documents, and the need for updated land use and forest cover maps.

The event opened the door to a broader conversation about the cocoa industry in Nigeria, further highlighting the many challenges confronting farmers. These challenges include limited land tenure systems, weak collaboration among industry players, low adoption rates of traceability systems, outdated farming techniques, inadequate access to high-quality inputs, adverse effects of climate change, under-utilisation of mitigation techniques on farms, and insufficient investment in agricultural technology and innovation.

In light of these hurdles, the stakeholders at the Calabar 2024 event proposed a shift towards increasing local processing and consumption of cocoa products as a strategy to strengthen the industry.

The stakeholders at the Calabar event urged the government and the Nigerian Cocoa Marketing Company (NCMC) to take the lead in standardising and updating available data on the cocoa value chain.

Furthermore, they advocated for awareness campaigns to educate all stakeholders in the cocoa value chain about the EUDR and other relevant regulations, ensuring a thorough understanding of the regulations and their implications for the industry.

Adeola Adegoke, president of the Cocoa Farmers Association of Nigeria (CFAN), proposed that the government should conduct a comprehensive review of the current land tenure system. This review, he explained, could potentially address land access and ownership challenges faced by cocoa farmers.

Moreover, Adegoke suggested that a national traceability system should be established, in collaboration with both development partners and industry experts, to enhance transparency and accountability in the cocoa industry.

In line with his call for government action, Adegoke underscored the significance of increased investment in research institutes with a focus on developing climate-smart agricultural practices for farmers.

The CFAN president also called for a conducive environment to be fostered that facilitates private sector and youth involvement in the cocoa value chain, thereby encouraging long-term sustainability and growth in the sector.

lexy2014:
I am surprised that as a big boy, you could not answer any of the questions asked.

1. how has this "hard work" translated into good governance and better standard of living for nigerians?

2.is this not the same way tinubu "secured" $1b from Indian investors 2years ago?

3. pls where are the indian investors and their $1b?

4. have you seen any of them around?

lexy2014:
how has this "hard work" translated into good governance and better standard of living for nigerians?

is this not the same way tinubu "secured" $1b from Indian investors 2years ago?

pls where are the indian investors and their $1b?

have you seen any of them around?

who and who are the German investors that will invest this 1billion euros?

PressMyButton:
Yesterday, it was Niger state, Today, it's the turn of Kebbi state.


A round of applause for Tinubu 👏👏 👏

grandstar:
The whole country needs to be like this.

9jatriot:
This is a massive milestone.
God bless Dangotte,
God bless Buhari
God bless Tinubu
God bless the good people of Nigeria
God forgive the haters of Nigeria.

One thing I have noticed is that APC seem more focused on development and infrastructure, but a lot of people were too used to PDP era of just sharing the money.

MadamExcellency:
People are afraid of police and soldiers on the highways.

Originalsly:
Ask yourself ...the French President visited now followed by the German President .... why now? If you can accept the fact that Europe depends on Africa for survival then you will understand that their supplies from the Sahel have been cut off due to the coups .... especially out of Niger. They are here looking to now exploit our natural resources.... and why wouldn't they accept the invitation to plunder extended to them by Tinubu? Even Biden is coming to Africa .... we need to open our eyes or we make the same mistake South Africa made..

EmperorCaesar:
;Dz

But gidgiddy said the International community doesnt wanna associate with PBAT


Guess the German President would have to apologize to those guys now

Shevchenkko:
All media talk and nothing happens later.

nomorespams:
Am sorry but your excuse is not good enough

We have neighbouring countries, smaller than us that have at least 24/7 light or at the very least all have meters , your credit runs out..you buy and reload gbam! nothing like no light and even they themselves have had that same electrical infrastructure since 1900's

Now if you say Siemens is on the matter even with alternative solutions, no wahala but how hard is it to inform Siemens that you want a Power situation exactly or something similar to what they have in their home nation of Germany.

There's money in Nigeria but because of the innate corruption that keeps striving, we let a lot of loose ends slide without checking..

Anyways it's not entirely your fault, majority of Nigerians are just naturally corrupt, if not I don't see how a sane human being after experiencing the past Buhari APC years will still go to the voting booth and pick APC again...lol like honestly it's one of the dumbest sh!t have ever seen..and to cap it up lol even the present Government said the previous Government let a lot of things in disarray which they wanna fix...like LMAO, just a fucking confirmation of why they shouldn't even be there in the first place..

Oga if you can't give us the best, then just shut it..the biggest black Nation in the world still living in perpetual darkness...

I swear if you put just 100 competent white people for 8 years in critical Power sector, you will see the apparent change..and you know it after all you always run to their country...and you over here capping we shouldn't expect magic..like seriously lol... anyways na the retards you dey tell that one sha ..so good to tell em..

veraponpo:
By the time this government is through with power, Nigeria would have improved in many areas.

Tinubu knows what he is doing. He is literally replicating what he did in Lagos at the center.

essentialone:
President of the Best Country in the world and President of the Worst Country in the world.

gidgiddy:
Kemi Badenoch called out Nigeria for what it is. But some Nigerians are angry at her, not because she is wrong, but because she chose not to be like some Nigerians and cover up failure out of ethic and sectional interests

skywalker240:
Let's hope the gas doesn't pass through Niger, the Sahel, Senegal or even Libya, because obviously you know it won't see the light of day

They should just channel it through the Atlantic Ocean

rinzaugustine:
Taking pictures and Celebrating symbolic nonsense that adds no value to the economy or improve naira value or repair bad roads or food prices in market is equal to rubbish. Seeking and snapping pictures with world leaders should be the prerogative of entertainers and online influencers and not the job of a president whose country is in total disarray and people dying from hunger as a result of his bolekaja economic policies with his incompetent, unqualified quack team

helinues:
Na so

Other countries are now having more relationship and confidence with Nigeria.

All thanks to president Tinubu with his new policy reforms

Nigeria is moving ahead

German Companies Seeing Improvement In Nigerian Investment Climate - German President

German President, Frank-Walter Steinmeier has heaped praises on the administration of President Bola Tinubu, praising the ''improving investment relations'' between Nigeria and major German companies and investors.


German President Steinmeier in Nigeria for Energy Talks

Frank-Walter Steinmeier is in Nigeria tending to Berlin’s "energy partnership" with Abuja.

- Steinmeier was joined by numerous German business leaders on the two-day visit.

German President Frank-Walter Steinmeier on Wednesday was in Nigeria for two days of talks aimed at bolstering Berlin's energy ties with Abuja.

Nigeria is Germany's second-largest trading partner in Africa.

Steinmeier, who met Wednesday with Nigerian President Bola Ahmed Tinubu, traveled with an entourage of high-profile German business leaders from various energy, finance, distribution and tech companies.

Speaking of collaboration between the two nations on gas and oil production and beyond, Steinmeier said, "We have one of the longest energy partnerships that Germany has ever had."

Steinmeier said the "energy partnership" between Germany — Europe's largest economy — and Nigeria — Africa's most populous nation — has gravitated "towards solar and wind power in recent years" but the next goal is "hydrogen production."

"We have the sun here in Nigeria, you have the technology," Tinubu said, as Steinmeier added that Berlin now has its sights set on the next step, green hydrogen, saying, "In Germany, we have the technology for that, too."

President Tinubu said his goal was to "continue to give you assurance that our business doors are open and our reforms are working very well," adding, "Our businessmen and policymakers are very anxious to do business with Germany."


Nigeria President Tinubu making changes to unleash economy

Since taking office in May 2023, Tinubu has ended costly fuel subsidies and freed up currency in reforms that government officials and analysts claim will revive the economy and attract investors.

Short term, however, the moves have added misery to one of Nigeria's worst economic crises in decades, with inflation at a nearly 30-year high of more than 33% in October.

Steinmeier acknowledged Tinubu's reforms, saying, "German companies are seeing an improvement in investment relations."

Though Nigeria's Energy Minister Adebayo Adelabu said no fresh deal had yet been signed, he emphasized that both sides "discussed how we can accelerate the existing agreements."

In November 2023, for instance, the Union Bank of Nigeria and the German DWS Group pledged to invest $500 million (€477 million) in renewable energy.

Moreover, Riverside LNG, a Nigerian firm, has vowed to deliver 850,000 tons of natural gas to Germany's Johannes Schuetze Energy Import AG.

MadamVanessa:




It's impressive to see Ghana setting a high standard for democratic elections. Their commitment to democratic principles is truly commendable. They've shown one deluded self acclaimed giant of Africa what it means to conduct free and fair election.

Nigeria is the most retrogressive in electoral process. Ghana election was flawless, the people choice won . Then tomorrow Nigerians will want to insult Ghana online, when Ghana is billion miles ahead of their shîthole.

Douglad:
This is why you should never make a third world country your permanent base.


They have no functional democracy. Even people within the same party will destroy structures built by the previous administration of that same party if there's a feud, let alone, a previous administration under a different party.


I've never really understood the allure of third worlds as retirement places to these people. The third worlds are filled with low IQ semi reetards both in the ruling and ruled class otherwise they would’ve not be a third world.

darkwan:
he should realy shutup....

their are companies that sell agriculture maschines already in nigeria....
problem is farmers are not safe....criminals target them alot....

Looking4Trouble:
JAGABAN has no record of failure or abandoned project. This particular one is to be completed in 12 months.

Oakenshield:
Exporting what exactly
1. We don't practice mechanical farming
2. Corruption in distribution of materials
3. Insecurity

APC belief them at your own peril