Description

Nigeria, one of Africa’s leading agricultural nations, holds a prominent place in the global cocoa industry. As the third-largest producer of cocoa beans in Africa—after Côte d’Ivoire and Ghana—and one of the top five globally, Nigeria’s dry cocoa beans are recognized for their quality and unique flavor profile. Cocoa beans are one of the country’s leading non-oil exports, contributing significantly to foreign exchange earnings and rural employment.

Cocoa was once Nigeria’s leading export crop, especially in the 1950s and 1960s, before the oil boom diverted attention from agriculture. The crop thrives mainly in the southwestern states such as Ondo, Ogun, Osun, Ekiti, Cross River, and Edo due to their favorable climate and soil conditions. Today, cocoa remains a key contributor to Nigeria’s agricultural GDP and a major income source for over 300,000 smallholder farmers.

Dry cocoa beans, the primary form in which cocoa is exported, are derived from the fermentation and drying of freshly harvested cocoa pods. The beans undergo a controlled process that enhances their flavor and aroma, making them suitable for the international chocolate and confectionery industries.

Globally, the cocoa market is driven by the growing demand for chocolate and related products. Europe is the largest importer of cocoa beans, with the Netherlands, Germany, and Belgium being key destinations. The United States and several Asian countries like Malaysia and Indonesia also import substantial quantities of cocoa for processing.

According to market projections, the global cocoa market continues to grow steadily due to rising consumer demand for premium chocolate, increased awareness of the health benefits of dark chocolate, and the growing demand for natural and organic ingredients. This creates a lucrative opportunity for Nigeria to scale its dry cocoa beans exports.

Nigeria produces between 250,000 and 300,000 metric tonnes of cocoa beans annually, with more than 70% of it being exported in raw, dry form. Nigerian cocoa is known for its medium-fat content and strong flavor, making it suitable for blending with other types of beans. Major importers of Nigerian cocoa include the Netherlands, Germany, Belgium, the United States, and Indonesia.

Exporters in Nigeria typically source cocoa beans from cooperatives and smallholder farmers. These beans are then cleaned, sorted, bagged, and fumigated before being exported via ports such as Lagos (Apapa) and Calabar. The beans are shipped in jute bags and typically certified according to international phytosanitary and quality standards.

International buyers of cocoa beans require adherence to strict quality standards. Beans must be well-fermented, properly dried, free of mold, and not contaminated with foreign materials. In addition, certification from global schemes such as Fairtrade, Rainforest Alliance, and UTZ is increasingly important. These certifications assure buyers that the beans have been produced ethically, with attention to environmental sustainability and fair labor practices.

In Nigeria, regulatory oversight is provided by the Nigerian Export Promotion Council (NEPC), the Nigerian Cocoa Board, and the Standards Organization of Nigeria (SON). Exporters must also comply with international food safety regulations, including those of the European Union and the U.S. Food and Drug Administration (FDA).

Despite its potential, the Nigerian cocoa export industry faces several challenges. One of the main issues is poor infrastructure, particularly in rural areas where cocoa is grown. Poor road networks delay the transportation of beans from farms to ports, affecting bean quality and increasing logistics costs.

Other issues include aging cocoa trees, inadequate access to high-quality inputs, lack of access to credit for farmers, and limited value addition. Many cocoa farmers still rely on outdated farming techniques, resulting in low yields per hectare. Moreover, most of Nigeria’s cocoa is exported raw, which limits the country’s ability to tap into the more profitable chocolate and cocoa processing industry.

Additionally, price volatility in the international market can make income unstable for exporters and farmers. Global cocoa prices are influenced by factors such as weather conditions in major producing countries, global demand trends, and speculative trading.

To address these challenges and boost exports, the Nigerian government and private stakeholders have introduced several initiatives. These include:

Training farmers in Good Agricultural Practices (GAP)

Distributing improved cocoa seedlings to replace aging trees

Encouraging public-private partnerships to develop processing facilities

Supporting exporters with trade information and export incentives through the NEPC

There is also a growing movement toward value addition in Nigeria. Some domestic companies are now processing cocoa into butter, cake, powder, and chocolate, for both local consumption and export. This not only increases foreign exchange earnings but also creates more jobs and stimulates industrial growth.

Dry cocoa beans export from Nigeria holds significant promise for economic diversification, rural development, and global competitiveness. With a favorable agro-ecological environment, a large base of experienced farmers, and increasing global demand, Nigeria is well-positioned to expand its cocoa export capacity.

However, to fully realize this potential, critical investments must be made in infrastructure, quality control, farmer support, and value addition. If these challenges are addressed, cocoa can once again become a leading pillar of Nigeria’s non-oil export economy.