Nigeria must prioritise investment in cocoa processing if it hopes to transform the sector into a major economic driver, agribusiness expert Dominic Joshua has said. The Founder of Cultivate Africa described cocoa as an untapped goldmine, stressing that value addition could generate billions in revenue and create thousands of jobs.
Speaking in an exclusive interview with The Guardian, Joshua lamented Nigeria’s failure to maximise its cocoa potential despite being the world’s fourth-largest producer, contributing approximately 270,000 metric tonnes annually. Unlike Ghana and Côte d’Ivoire, which have heavily invested in processing, Nigeria exports around 90% of its cocoa as raw beans, reaping only a fraction of the lucrative $130 billion global chocolate market.
“Nigeria has the land, climate, and workforce to dominate the global cocoa industry,” Joshua stated. “Yet, we remain at the lower end of the value chain, exporting raw beans instead of processing them into cocoa butter, powder, or chocolate—where the real profits lie.”
Challenges Stalling Nigeria’s Cocoa Potential
Despite accounting for over 25% of Nigeria’s agricultural GDP, the cocoa sector has been largely neglected. The Cocoa Research Institute of Nigeria (CRIN) reports that more than 80% of the country’s cocoa farms are over 40 years old, leading to dwindling productivity. Additionally, limited access to credit, poor infrastructure, and fluctuating global prices have made cocoa farming increasingly unsustainable.
Joshua identified several critical barriers preventing Nigeria from fully harnessing its cocoa potential:
Aging Farms and Low Yields: Nigeria’s cocoa yield averages between 300–400 kg per hectare, significantly lower than Côte d’Ivoire and Ghana’s 800 kg per hectare. Aging trees, poor farm management, and low adoption of improved hybrid seedlings have contributed to this gap.
Lack of Processing Capacity: “Our failure to invest in local cocoa processing industries is one of our biggest economic mistakes,” Joshua remarked. Nigeria processes less than 20% of its cocoa output, while Ghana and Côte d’Ivoire have developed thriving value-addition industries.
Funding and Credit Access: Smallholder farmers, responsible for 80% of Nigeria’s cocoa production, struggle to obtain affordable loans. “Cocoa farming is capital-intensive. Without access to credit for improved seedlings, mechanisation, and storage, farmers will continue selling their produce cheaply,” he explained.
Post-Harvest Losses and Poor Infrastructure: Weak road networks, inadequate storage facilities, and inefficient supply chains result in annual post-harvest losses of 20–30%. These deficiencies force farmers to sell their cocoa at lower prices due to a lack of processing capacity and storage options.
Climate Change and Pests: Rising temperatures, erratic rainfall, and pests such as black pod disease threaten cocoa yields. “If we fail to invest in climate-smart agriculture and pest-resistant cocoa varieties, our cocoa output will continue to decline,” Joshua warned.
A Roadmap for Cocoa’s Transformation
Joshua insists that Nigeria can reclaim its position as a dominant player in the global cocoa industry if the right policies and investments are implemented. He outlined several key strategies:
Investing in Processing: “We must stop exporting raw beans and start processing at least 50% of our cocoa domestically,” Joshua urged. Establishing modern processing plants for cocoa butter, powder, and chocolate will boost foreign exchange earnings and create jobs.
Financial Support for Farmers: Joshua called on the government and financial institutions to establish cocoa investment funds with low-interest loans for farmers and processors. “If Ghana can provide financial support for its cocoa farmers, Nigeria has no excuse not to do the same,” he said.
Adopting High-Yield Hybrid Varieties: Nigeria must replace aging cocoa trees with high-yield hybrid varieties capable of doubling or tripling production. “Research has already developed cocoa varieties that mature in two to three years instead of five to seven. We need to distribute these seedlings widely,” he emphasised.
Improving Infrastructure and Supply Chains: Strengthening rural road networks and investing in storage facilities will help reduce post-harvest losses and ensure efficient transportation to processing plants. “Even a bumper harvest will not translate to higher farmer incomes unless we fix our supply chain,” Joshua added.
Enhancing Trade Agreements and Branding: Nigeria should secure better trade deals and market its cocoa as a premium product. “Certifications such as Fair Trade and organic labelling can help Nigerian cocoa fetch higher prices internationally,” he suggested.
Joshua’s insights underscore the urgent need for Nigeria to rethink its approach to cocoa production. With strategic investments, policy support, and private-sector involvement, the country can transition from being a raw cocoa exporter to a global leader in cocoa-based products.
“If we do this right, cocoa can generate more revenue than oil in the next decade,” Joshua concluded. “But the time to act is now.”
For more updates on Nigeria’s cocoa industry and agribusiness reforms, visit the International Cocoa Organization (ICCO) and Cultivate Africa.
