How Nigeria can boost cocoa value chains

The cocoa industry is a vital component of West Africa’s economy, with countries like Ghana and Côte d'Ivoire significantly contributing to their GDP through cocoa production. However, Nigeria, historically a key player in the industry, has faced challenges in recent years. Akin Laoye, CEO of FTN Cocoa Processors, sheds light on the current state of the cocoa market, highlighting the need for value addition and increased consumption within the region. Laoye expresses optimism about the industry's outlook for the year, expecting a correction in market activities following a hot last quarter in 2023. He emphasizes the importance of moving away from simply exporting raw cocoa beans and instead focusing on value addition to create products that cater to local and international markets. One key aspect Laoye underscores is the need for increased consumption of cocoa products within West Africa. By processing cocoa locally and integrating it into confectioneries and chocolates, countries like Nigeria can stimulate demand and boost economic growth. He suggests that producing affordable, high-quality chocolate locally can lead to higher consumption rates, tapping into the region's large population. In order to compete with neighboring cocoa-producing giants like Ghana and Côte d'Ivoire, Laoye recommends that Nigeria's government provide support to cocoa farmers, incentivize cocoa farming as a profitable business, and expand agricultural infrastructure. By encouraging more farmers to cultivate cocoa and improving farming practices through extension services, the industry can see significant growth. Private sector players are also encouraged to contribute to the industry's development by investing in initiatives that support farmers, provide resources like seedlings and chemicals, and digitize farming operations. Laoye stresses the importance of regulation in ensuring that these investments are sustainable and beneficial to all parties involved. While challenges such as funding constraints remain, efforts from both the public and private sectors can pave the way for a thriving cocoa industry in Nigeria. By leveraging its vast land resources, large population, and deregulated market, Nigeria has the potential to reclaim its status as a leading cocoa producer and exporter in the region. With strategic investments, improved farming practices, and a focus on value addition, the country can unlock new opportunities for economic growth and competitiveness in the global cocoa market.