Published in Agriculture
Nigeria’s cocoa export dwindled in the last five years as the country’s export value of the product remained at its all time low over the past five years.
February 16th, 2022
Nigeria’s cocoa export dwindled in the last five years as the country’s export value of the product remained at its all time low over the past five years.
After generating an export value of $627.03 million in 2014, the country has generated less than half of this value in subsequent years.
From 2016 to 2020, cocoa export value was highest in 2018 at $302.06 million, almost 100% less than exports in 2014.
Though there was an increase in value in 2020 over 2019 from $248.78 million to $292.39 million, it is yet to reach its 2014 output.
Cocoa beans accounted for 0.82% of Nigeria’s total merchandise exports (the total merchandise export value was $35.634 Billion) in 2020.
In 2019, the share of cocoa bean export accounted for only 0.4% of the total goods export value. In comparison to 2019, the share of cocoa in the overall merchandise exports increased by 0.42% in 2020.
Nigeria’s Cocoa export is dwindling since 2012. The country has subsequently generated less than half its export revenue in 2014″
Nigeria is ranked as the fourth largest cocoa producer in the world after Cote D’Ivoire, Ghana and Indonesia. Over 328,000 tons of cocoa was produced in 2020 and Nigeria is still unable to take full advantage of the cocoa industry like Cote D’Ivoire and Ghana in order to diversify its economy.
Report shows that food exports made up about 3% of Nigeria’s total exports for 2020 while fuel exports accounted for the remaining. Cocoa beans was the fourth on the list of the highest dollar value in Nigeria’s global shipment for 2020 at about 1% after Mineral fuels including oil, ships,boats and floating structures and Oil seeds.
As a leading cash crop for Nigeria, cocoa production is faced with some challenges that have made the country’s production level face regression.
Financing is one of the problems associated with cocoa production as cocoa farmers need funds to achieve optimal production of cocoa. Most of these farmers are smallholder farmers, disconnected from markets and critical value chains. Most live in poverty and are financially excluded, unable to afford quality inputs that increase yield.
Reports also note that another challenge with cocoa production is that a good number of cocoa processing factories in Nigeria are not functioning or producing below capacity.
Other factors affecting Nigeria’s cocoa production include low participation of youths in cocoa farming resulting in labour shortages, difficulties getting hold of agrochemicals for pests and disease as these products are expensive so farmers buy cheaper chemicals that cause damage to their crops.
Despite these challenges, Nigeria is still a leading player in the global cocoa industry and the fourth largest cocoa producer in the world. More resources can be given to cocoa farming and exportation as a way to help boost and diversify the Nigerian economy. This action could make Nigeria become a powerhouse in cocoa production and exports as our climate and agricultural land are suitable for cocoa farming.
The improvement in local rice production over the last 5 to 10 years provides a model for improving cocoa production.
The government plans to increase Nigeria’s yearly cocoa production to 1Million tons by working with relevant stakeholders. There is a National Cocoa Plan 2020-2030 that is designed to “promote a sustainable cocoa economy; resurgence in production and industrialisation to trigger a robust domestic consumption, farmgate prosperity, youth engagement thereby leading to increased foreign exchange earnings from exports of consistently superior quality beans and products.”
Will Cocoa production receive the necessary attention to boost its position as a cash crop?
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Nigeria’s cocoa export dwindled in the last five years as the country’s export value of the product remained at its all time low over the past five years.
