The Federal Government says Nigeria loses an estimated $2 billion annually in potential revenue because of inadequate local processing and the underutilisation of its cocoa processing capacity.
The Minister of Agriculture and Food Security, Abubakar Kyari, disclosed this in Lagos on Wednesday during the two-day Africa Cocoa and Coffee Conference organised by the Cocoa and Coffee Farmers Alliance Association of Africa, COCEFAAA, in partnership with the Federal Ministry of Agriculture and Food Security and the Cocoa Research Institute of Nigeria, CRIN.
Kyari, who was represented by the Deputy Director of Tree Crops at the ministry, Mr Ajayi Olutobaba, said Nigeria had an installed cocoa processing capacity of about 2,000 tonnes annually, but only approximately 30 per cent of that capacity was being utilised.
He said the Federal Government was working to shift the country from exporting mainly raw cocoa beans towards processing more of its produce locally into cocoa butter, liquor, powder and chocolate. According to him, the goal is to increase domestic value addition while maintaining Nigeria’s position as a reliable supplier in the international cocoa market.
Kyari described the estimated $2 billion annual loss as an investment opportunity rather than a shortage of agricultural resources. He said the government was prepared to support investors willing to establish processing facilities and expand local manufacturing.
The minister also highlighted plans to support the rehabilitation of ageing cocoa farms and encourage coffee production through improved seedlings, agricultural extension services and assistance for smallholder farmers. He added that better farm inputs, stronger pest and disease management and climate-smart farming practices would be necessary to protect future harvests.
Kyari called on African countries to strengthen cooperation by sharing research, harmonising standards and adopting a common approach when engaging international buyers.
He noted that Africa produces about 70 per cent of the world’s cocoa but receives only a small share of the value generated by the global chocolate industry, estimated at more than $130 billion.
He also highlighted the decline in Africa’s share of global coffee production, from 27.2 per cent in the 1970s to about 12.5 per cent currently. Kyari cited Ethiopia and Uganda, which reportedly earned more than $1.4 billion and $2 billion respectively from coffee exports in 2025, as examples of the potential economic benefits of developing the sector.
On environmental compliance, the minister said African cocoa-producing countries needed to prepare for the European Union’s deforestation regulation. He stressed that traceability systems would help protect the continent’s access to international markets by documenting the movement of agricultural products from farms to buyers.
Speaking on the conference theme, Building Sustainable Value Chains for Cocoa and Coffee Across West, Central and East Africa, the Acting Executive Director of CRIN, Dr Abiodun Adedeji, said Nigeria’s cocoa productivity remained low despite previous government efforts to distribute improved planting materials.
Adedeji put the country’s annual cocoa yield at between 250 and 300 kilogrammes per hectare, a level he said needed significant improvement to strengthen farmers’ earnings and the competitiveness of the industry.
He explained that CRIN had distributed 601,000 cocoa pods to farmers free of charge between 2011 and 2015, followed by 300,000 seedlings during the COVID-19 period. He added that the Federal Government had now directed the institute to produce and distribute one million improved hybrid cocoa seedlings.
Despite these interventions, Adedeji said national productivity had remained within the same range, underscoring the need for stronger research, better agricultural practices and more effective support for farmers.
He called for improved prices for cocoa farmers, increased domestic processing and more reliable industry data. He also urged African countries to collaborate on research and development to produce better crop varieties and develop farming systems capable of responding to emerging challenges.
Adedeji further stated that non-producing countries captured about 90 per cent of cocoa proceeds and more than 70 per cent of coffee proceeds, while Africa retained less than 10 per cent of cocoa value and less than 30 per cent of coffee value.
The Global President and Founder of COCEFAAA and convener of the conference, Comrade Adeola Adegoke, also called for a fundamental change in how Africa participates in the global cocoa industry. He said the continent produces about 80 per cent of the world’s cocoa but captures less than 10 per cent of its value.
Adegoke pointed to the volatility of international cocoa prices, recalling that the 2023–2024 season recorded a global deficit of approximately 490,000 tonnes, described as the largest in 60 years. The shortage pushed prices above $10,000 per tonne before the International Cocoa Organization, ICCO, subsequently reported a surplus, followed by a price decline of about 75 per cent.
He questioned why cocoa-producing countries continued to earn relatively little despite their contribution to global supply, arguing that greater local processing could help African economies retain more value and reduce their exposure to fluctuations in international commodity prices.
Representing the Lagos State Commissioner for Agriculture and Food Systems, Abisola Olusanya, the Director of Agribusiness at the state ministry, Mrs Aramide Gansallo, said African countries needed to move beyond exporting raw cocoa and coffee beans to developing local processing, branding and consumption.
Gansallo also stressed the importance of making agriculture more attractive to young people by presenting it as a viable business opportunity, a technology-driven industry and a long-term career option.
Meanwhile, the Managing Director of Sunbeth Global Concepts, Olasunkanmi Owoyemi, represented by the company’s Manager of Corporate Affairs and Communication, Abdussamad Abdurrahman, said Africa had for too long supplied raw agricultural materials while other countries captured the benefits of processing and manufacturing.
He disclosed that the company was developing a cocoa processing facility with a capacity of 70,000 metric tonnes at its industrial park, which was expected to be ready by 2027. The project is intended to support local processing and increase the value derived from Nigerian cocoa.
Owoyemi’s representative also emphasised the growing importance of traceability, noting that the ability to track cocoa from farms through the supply chain had become essential for maintaining access to international markets.
The conference brought together government officials, researchers, farmers and private-sector representatives to discuss ways of strengthening cocoa and coffee production, expanding processing capacity and ensuring that African producing countries retain a greater share of the value generated by their agricultural commodities.
SOURCE: VANGUARD
