Embracing Agro-Industrialisation: Unleashing Nigeria's Economic Potential Through Cocoa Value Chain

Strategic Insights -

Nigeria's economic engine, fuelled by crude exports since 1956, is at a crossroads. Growing climate concerns and volatile global oil prices necessitate a strategic shift toward sustainable and resilient economic models. One viable option is agro-industrialisation, leveraging the country's vast cocoa resources. With Nigeria ranking among the top cocoa-producing countries globally, embracing the cocoa value chain has the potential to drive national prosperity and reposition agriculture at the heart of Nigeria's economic transformation.

Key Takeaways:

  • Nigeria's annual cocoa yield is approximately 300,000 metric tonnes, expected to reach 500,000 tonnes by 2025, according to federal projections.
  • The country processes only 20% of its cocoa, with 80% being exported as raw beans, despite having five operational factories running at a mere 8% capacity.
  • The domestic processing industry remains critically underutilised, with a combined utilisation of only 20,000MT annually.
  • Nigeria's missed opportunity in the cocoa value-added market is evident when compared to Côte d'Ivoire, which exported cocoa beans valued at $3.32 billion in 2023, and Ghana, which generated about $1.1 billion from processed cocoa products in the same year.
  • Passage of the National Cocoa Management Board Bill is necessary to empower the National Cocoa Management Committee and provide a robust legal framework for quality assurance and export regulation.
  • Strengthening European Union Deforestation Regulation Compliance (EUDR) and establishing and enforcing the National Cocoa Management Board Act are crucial steps in transforming the cocoa industry.
  • Attracting Foreign Direct Investment (FDI) to expand cocoa processing capacity and empowering cocoa industry groups to train farmers and Local Buying Agents on EUDR compliance are vital components of the recommended 10-year Agro-Economic Roadmap anchored in the commodification of agricultural products, starting with cocoa.
  • Revitalising existing processing facilities and supporting the Cocoa Research Institute of Nigeria (CRIN) through increased funding are essential for the growth of the industry.
  • A nationwide public awareness campaign is necessary to reposition Nigeria as a value-added agro-industrial hub, with cocoa at its core.

Statistics:

  • Nigeria's annual cocoa yield: approximately 300,000 metric tonnes.
  • Expected annual cocoa yield by 2025: 500,000 tonnes.
  • Percentage of cocoa processed locally: 20%.
  • Percentage of cocoa exported as raw beans: 80%.
  • Global cocoa value-added market worth: over $100 billion annually.
  • Cocoa derivatives market (butter, powder, liquor) valued at $25.04 billion in 2024.
  • Global cocoa butter market estimated at $8.86 billion in 2025, projected to reach $10.59 billion by 2035, growing at a CAGR of 1.8%.
  • Cocoa liquor market expected to grow from $11.33 billion in 2023 to $17.36 billion by 2030.

Sources:

  • Nigerian Export Academy. (n.d.). Cocoa exportation in Nigeria. https://nigerianexportacademy.com/blog/cocoa-exportation-in-nigeria
  • Punch Nigeria. (2025, March 9). Nigeria targets 500,000 tonnes cocoa output to challenge global leaders. https://punchng.com/nigeria-targets-500000-tonnes-cocoa-output-to-challenge-global-leaders/
  • Federal Ministry of Agriculture and Rural Development. (2024). Cocoa production report 2024. FMARD.
  • National Bureau of Statistics. (2025). Foreign trade in goods statistics Q4 2024. NBS.
  • International Institute for Environment and Development. (2022, November). The global cocoa value-added market is worth over $100 billion annually. https://www.iisd.org/system/files/files/2022-11/2022-global-market-report-cocoa.pdf
  • Future Market Insights. (2025, March). Cocoa butter market size, trends & forecast 2023-2033. https://www.futuremarketinsights.com/reports/cocoa-butter-market