Nigeria loses about $2 billion annually in potential earnings because of inadequate local processing of cocoa, the Federal Government has said, urging investors to take advantage of opportunities in the country's agricultural value chain.
The government said Nigeria's installed cocoa processing capacity of about 2,000 tonnes annually was being significantly underutilised, with only 30 per cent of the capacity currently in use.
The Minister of Agriculture and Food Security, Abubakar Kyari, disclosed this in Lagos at a two-day Africa Cocoa and Coffee Conference organised by the Cocoa and Coffee Farmers Alliance Association of Africa (COCEFAAA), in partnership with the Federal Ministry of Agriculture and Food Security and the Cocoa Research Institute of Nigeria (CRIN).
Kyari, represented by the ministry's Deputy Director of Tree Crops, Ajayi Olutobaba, said Nigeria needed to shift from exporting raw agricultural commodities to producing finished and semi-finished goods for domestic consumption and international markets.
He identified cocoa butter, liquor, powder and chocolate as products that could generate greater economic returns if processed locally.
“Roughly $2 billion in value addition slips away every year. It is not a shortage of resources; it is an opportunity waiting for the right investors,” he said.
The minister added that the government's objective was to encourage investment in processing facilities rather than restrict exports, stressing that value addition would help Nigeria earn more from its agricultural resources.
He said the government would also support the rehabilitation of ageing cocoa farms, expansion of coffee production, distribution of improved seedlings and provision of extension services to smallholder farmers.
According to him, stronger pest and disease management, better agricultural inputs and climate-smart farming practices would be necessary to sustain production and protect future harvests.
Kyari called on African countries to collaborate on agricultural research, harmonise standards and strengthen their collective bargaining power in international commodity markets.
He said Africa produced approximately 70 per cent of the world's cocoa but received only a small proportion of the value generated by the global chocolate industry, estimated at more than $130 billion.
He also noted that the continent's share of global coffee production had declined from 27.2 per cent in the 1970s to about 12.5 per cent.
Citing the earnings of Ethiopia and Uganda from coffee exports in 2025, Kyari said African countries could improve their returns by investing in production, processing and stronger market systems.
“If our neighbours can do it, the continent can do it, but none of us will get there alone,” he said.
On the European Union's deforestation regulation, the minister said African producers needed effective traceability systems to demonstrate compliance with international market requirements and protect their access to export destinations.
IITA seeks climate-resilient cocoa varieties
The International Institute of Tropical Agriculture (IITA) stressed the need for high-yielding, climate-resilient cocoa varieties to improve productivity and help farmers cope with changing weather conditions.
The Acting Executive Director of CRIN, Dr Abiodun Adedeji, said Nigeria's cocoa productivity remained between 250kg and 300kg per hectare annually, despite years of distributing improved planting materials to farmers.
He said the Federal Government had directed CRIN to produce and distribute one million improved hybrid cocoa seedlings as part of efforts to raise output.
Adedeji recalled that the institute distributed 601,000 cocoa pods to farmers between 2011 and 2015, followed by 300,000 seedlings during the COVID-19 period.
“Presently, Federal Government has mandated CRIN to produce and give out one million improved hybrid cocoa seedlings. But between that 2011 and now, the Nigerian productivity still lies between 250 and 300kg per hectare per year,” he said.
He called for better prices for farmers, increased domestic processing, stronger research and improved agricultural data to build a sustainable cocoa industry.
Adedeji also urged African countries to strengthen cooperation in research and development to produce better crop varieties and develop farming systems capable of addressing emerging challenges.
He said non-producing countries received about 90 per cent of cocoa proceeds and more than 70 per cent of coffee proceeds, highlighting the limited economic benefits retained by countries that grow the commodities.
Africa captures less than 10% of cocoa value
The Global President and Founder of COCEFAAA, and convener of the conference, Comrade Adeola Adegoke, said Africa produced about 80 per cent of the world's cocoa but captured less than 10 per cent of its value.
He argued that the continent's dependence on raw commodity exports left farmers and producing countries vulnerable to fluctuations in international prices.
Adegoke cited the 2023–2024 cocoa season, which recorded a global deficit of about 490,000 tonnes, described as the largest in 60 years. The shortage pushed prices above $10,000 per tonne before subsequent market developments led to a sharp decline.
He said the situation illustrated the risks of relying primarily on raw cocoa exports instead of developing domestic processing and manufacturing industries.
“When there is bumper harvest, price goes down. When there is shock, price goes to $12,000, Robusta $15,000. Why should we produce more and earn less?” he asked.
He called for a more coordinated approach to developing African cocoa and coffee industries, including investment in processing infrastructure and stronger domestic markets.
Sunbeth invests in 70,000-tonne processing plant
Representing the Lagos State Commissioner for Agriculture and Food Systems, Abisola Olusanya, the Director of Agribusiness at the state Ministry of Agriculture and Food Systems, Mrs Aramide Gansallo, said Africa needed to prioritise processing, branding and consumption of its own cocoa and coffee products.
She added that agriculture should be presented to young people as a commercially viable enterprise, a technology-driven sector and a promising career path.
The Managing Director of Sunbeth Global Concepts, Olasunkanmi Owoyemi, represented by the company's Manager of Corporate Affairs and Communication, Abdussamad Abdurrahman, said Africa had continued to supply raw materials while other countries captured much of the value through manufacturing.
“We have been content to be the world's farm while others become the world's kitchen,” he said.
Abdurrahman disclosed that Sunbeth was building a cocoa processing facility with a capacity of 70,000 metric tonnes at its industrial park, with completion expected next year.
He said the investment would support domestic processing and increase value addition, noting that traceability had become increasingly important for access to international markets.
Participants at the conference, which focused on building sustainable cocoa and coffee value chains across West, Central and East Africa, emphasised the need for increased investment, improved farm productivity, climate resilience and stronger regional cooperation.
They maintained that Africa's dominance in cocoa and coffee production would translate into greater economic benefits only if producing countries expanded local processing and captured a larger share of the value generated by the global industries.
Leave a Reply