Global cocoa prices have experienced a dramatic increase, climbing from approximately $2,200 per ton in 2022 to nearly $11,000 by late 2024. This surge is largely attributed to decreased outputs from top producers like Ivory Coast and Ghana due to adverse weather conditions and crop diseases. The price hike has not only attracted investors but also spurred a wave of professionals and young individuals, dubbed “cocoa boys,” to return to farming in cocoa-producing regions such as Ikom, Cross River State. Reuters+1Nairametrics+1Nairametrics+4Nairametrics+4Reuters+4

Government’s Ambitious Production Targets

Nigeria, currently the world’s seventh-largest cocoa producer with over 280,000 tons in 2023, has set an ambitious target to increase production to 500,000 tons for the 2024-2025 season. Achieving this goal would position Nigeria just behind Ivory Coast, Ghana, and Indonesia in global rankings. To support this, the government is focusing on rehabilitating old plantations, establishing new ones, and providing support to smallholder farmers.Nairametrics+1Inquirer Business+1Nairametrics+2Inquirer Business+2Daily Sabah+2

Significant Investments Fuel Expansion

The surge in cocoa prices has attracted substantial investments. Notably, British International Investment, in collaboration with Nigerian agribusiness Johnvents Group, has invested $40.5 million to expand cocoa processing capacity from 12,000 to 30,000 metric tons annually. This investment aims to enhance machinery, refurbish factories, and achieve 90% certification under the Rainforest Alliance sustainability program by 2027. Prime Progress+3Food Industry Executive+3Daily Sabah+3Reuters+1Nairametrics+1

Economic Implications and Job Creation

Cocoa’s resurgence is poised to have profound economic impacts. In 2023, the cocoa sector generated ₦356.16 billion, making it the highest agricultural contributor to Nigeria’s GDP. The sector also provides millions of jobs, particularly in rural southwestern states, thereby enhancing development and reducing unemployment. Medium

Challenges Ahead

Despite the optimistic outlook, challenges persist. Issues such as smuggling, with estimates of up to 200,000 tons annually, and the need for improved infrastructure and farmer support systems, remain significant hurdles. Addressing these challenges is crucial to fully capitalize on the cocoa boom and ensure sustainable growth.Reuters

Conclusion

Nigeria’s strategic investment in cocoa production represents a pivotal shift towards economic diversification and resilience. By capitalizing on favorable global market conditions and addressing existing challenges, Nigeria aims to transform its cocoa sector into a robust pillar of its economy, reducing its dependency on oil and fostering sustainable development.

Last Updated on May 11, 2025 by kingstar