Cocoa futures have surged to $9,187 per ton at the New York Commodity Exchange, reinforcing Nigeria’s strategic shift away from crude oil dependence toward agricultural exports.
Investors have renewed their appetite for cocoa beans as global prices continue their meteoric rise, driven by poor yields in major cocoa-producing nations and Nigeria’s growing ambition to reposition itself in the global cocoa market.
According to the United Nations Food and Agriculture Organization (FAO), Nigeria produced over 280,000 metric tons of cocoa in 2023, making it the seventh-largest producer in the world.
The country now aims to ramp up its production to 500,000 tons for the 2024–2025 season, placing it behind only Ivory Coast, Ghana, and Indonesia.
The surge in cocoa prices is largely tied to supply shocks from Ghana and Ivory Coast, which jointly contribute about 50% of global output.
The International Cocoa Organization revealed that the average price of cocoa hovered between $2,200 and $2,500 per ton in 2022 but spiked to nearly $11,000 by December 2024.
At one point in 2024, New York cocoa futures nearly touched $13,000 per ton as unfavorable weather and disease devastated West African crops.
Though prices have slightly receded due to expectations of a small global surplus, they remain far above historic levels.
In a bid to capitalize on this price boom, Nigeria is setting its sights on becoming a top cocoa exporter within the next three years.
A key driver of this ambition is a $40.5 million investment by British International Investment in collaboration with manufacturing partner Johnvents Group.
The funding is being directed toward Premium Cocoa Products Ile-Oluji, a subsidiary of Johnvents, to increase its processing capacity from 13,000 to 30,000 metric tons annually.
This expansion is expected to bolster Nigeria’s global competitiveness in value-added cocoa exports.
To support these efforts, the Federal Government has proposed legislation to establish a National Cocoa Management Board.
This move is aimed at streamlining production, processing, and marketing across the cocoa value chain.
“The newly proposed board will oversee all cocoa production, processing, and marketing to ensure it is done coherently and efficiently,” said Senator Abubakar Kyari, Minister of Agriculture and Food Security.
The initiative follows consultations with officials in Ghana and Côte d’Ivoire, both of which operate national cocoa boards that have significantly enhanced coordination and revenue in their respective sectors.
In preparation for the bill, Nigeria’s Ministry of Agriculture formed a Cocoa Management Committee to assess the proposal’s viability.
The Federal Executive Council has also approved a comprehensive action plan in 2024 that targets sustainable sectoral growth and includes a projected investment exceeding $300 billion over the next decade.
Meanwhile, local interest in cocoa farming continues to grow.
The Cocoa Farmers Association of Nigeria now has over 10,000 smallholder members for the 2023–2024 season, reflecting increasing domestic momentum behind the crop.
Demand for cocoa-derived products remains strong globally.
Nestlé SA’s US division has announced price hikes for its Toll House morsels, baking cocoa, and fudge kits, effective June 23.
This follows the company’s earlier requests to suppliers to reduce costs or cancel contracts, which some refused.
Rising input prices are forcing major food brands to adjust, even as overall grocery inflation shows signs of easing.
Chocolate and snack prices continue to rise, testing how much more consumers are willing to pay amid constrained supply.
Nigeria’s renewed focus on cocoa is not just a hedge against oil volatility—it signals a long-term economic recalibration, one that could reshape its role in global trade if these ambitious plans are realized.
