In the first quarter of 2024, Nigeria experienced a remarkable 304 percent increase in cocoa exports, driven by heightened demand and the depreciation of the naira, as reported by the National Bureau of Statistics (NBS).

Cocoa exports represented 42.4 percent of the total agricultural exports, which amounted to N1.04 trillion during this period, soaring to N438.7 billion from N108.6 billion in the same quarter of 2023.

Additionally, cocoa prices skyrocketed by over 567 percent in Q1 2024, surpassing N12 million per metric ton for the first time in the nation’s history.

This surge was largely attributed to significant supply shortages from Ivory Coast and Ghana, two key suppliers, which disrupted the global market.

As a result of the price increase, Nigerian farmers have started to rejuvenate old cocoa plantations and are planting more high-yield seedlings to replace aging and less productive trees, while also expanding their cultivation areas.

The cocoa export industry presents significant opportunities for economic growth and returns. By maintaining a focused approach to expanding and decentralizing cocoa production, Nigeria has the potential to increase its output to approximately 500,000 to 600,000 metric tons. This would require collaborative efforts from both the government and the private sector.

“You can imagine the efforts and the returns that are coming from the export of cocoa,” Adeola Adegoke, national president of the Cocoa Farmers Association of Nigeria, said.

In his opinion, the country’s cocoa export earnings in the first quarter demonstrate the significant potential of the cocoa industry. With appropriate focus and investment, this potential can be fully realized, leading to increased government revenue.

Despite the significant increase in cocoa export revenue, Mufutua Abolarinwa, the national president of the Cocoa Association of Nigeria (CAN), expressed concerns regarding the stagnant production levels. Abolarinwa emphasized that the revenue growth is primarily attributed to favorable exchange rates rather than a corresponding increase in production. The current production level remains at 280,000 metric tons, necessitating further analysis and strategic interventions to enhance productivity and capitalize on the favorable market conditions.

The nation Is presently ranked as the fourth-largest global producer of cocoa, with an output of 280,000 metric tons in the 2022–2023 season, according to the most recent data on global production from the International Cocoa Organisation (ICCO). This places it behind Ivory Coast, Indonesia, and Ghana. Additionally, it is the third-largest exporter, trailing only Ivory Coast and Ghana.

During the first half of the year, cocoa prices experienced an unprecedented surge, reaching a record high of $12,000 per ton in April 2024, as indicated by ICCO data.

Domestically, cocoa bean prices are also rising due to the weakening of the naira. Farmers have confirmed that they are profiting from the price increase, and many have returned to farming to take advantage of the current market boom.

Sayina Riman, a cocoa farmer in Ikom, Cross River State, shared with BusinessDay that he has devoted more attention to his cocoa plantation this year than ever before.

“I have dedicated more attention to my cocoa farm this year than in the past. I have pruned the undergrowth and applied liquid fertilizer, which are practices I have not employed previously,” Riman stated.

In terms of profitability, he reported a 200 percent increase in revenue, but a significant portion was allocated to labor costs.

Oba Dokun Thompson, the Oloni Eti-Oni, chairman of Eti-Oni Development Group and producer of Gureje IV chocolate bars, advocated for increased value addition in the cocoa industry beyond mere monetary gains. He cautioned that the current price rally is not sustainable as other regions are rapidly expanding their cocoa production capacity, which could lead to a price decline in the next two years.

Nevertheless, Thompson encouraged farmers to sustain the momentum witnessed in 2024, emphasizing the need to view the cocoa market as a value-added sector beyond the price rally.

He stressed the importance of government support for innovation, creative ideas, and new approaches to ensure a comprehensive understanding of the cocoa industry.

The chocolate manufacturer further emphasized the need for government support to develop a robust cocoa culture in Nigeria, positioning the country as a leader in West Africa and Africa as a continent.