Nigeria Cocoa Exports Surge as Prices Hit Record Highs & Naira Weakens

Nigerian cocoa farmers and exporters are benefiting from high global cocoa prices and the steep devaluation of the naira. The cost of cocoa has almost doubled since the start of the year, with prices reaching a historic high of US$5,874 a ton on February 8. This increase is attributed to poor weather affecting harvests in Ivory Coast and Ghana, leading to a supply shortfall. 

In Nigeria, the local price of cocoa per ton at Matori cocoa warehouse in Lagos was N8 million per ton on February 14, marking a 344 percent increase from N1.8 million per ton in December 2023. The naira devaluation has also impacted the market, with the currency hitting N1,534 at the Nigerian Autonomous Foreign Exchange Market (NAFEM). Currently, the farm-gate price of cocoa in Nigeria ranges between N6.5 and N7 million, and exporters are selling a ton for between N8 and N8.5 million.

Nigeria, the world’s fourth-largest cocoa producer, produced 280,000 metric tonnes in the 2022–2023 season, according to the International Cocoa Organisation (ICCO). The country's cocoa production is anticipated to increase in the 2023-2024 season. Nigeria has two cocoa harvest seasons: the smaller mid-crop from April to June and the main crop from October to December, with the latter accounting for about 70 percent of the country's cocoa output.

In the first nine months of 2023, Nigeria exported agricultural products valued at N798.5 billion, with cocoa exports accounting for 26.23 percent of the total. The main export destinations for Nigerian cocoa include the Netherlands, Belgium, Germany, Indonesia, the United States, Malaysia, Canada, and Italy.