Naira Drop Boosts Nigeria’s Cocoa Exports by 304%

In the first quarter of 2024, Nigeria’s cocoa exports surged by 304%, driven by increased global demand and the depreciation of the naira, according to the National Bureau of Statistics (NBS). Cocoa exports contributed 42.4% to Nigeria’s N1.04 trillion agricultural exports, rising to N438.7 billion, up from N108.6 billion in Q1 2023.

The significant price increase, driven by supply shortages in Ivory Coast and Ghana, saw cocoa prices surpass N12 million per metric ton for the first time in Nigeria. This price rally has encouraged Nigerian farmers to revive old plantations and expand cocoa production.

Despite this revenue growth, production levels have remained stagnant at 280,000 metric tons, according to Mufutua Abolarinwa, President of the Cocoa Association of Nigeria (CAN). The revenue boost is attributed mainly to the favorable dollar exchange rate, not an increase in production.

Nigeria is currently the world’s fourth-largest cocoa producer and the third-largest exporter. Analysts warn that the current price surge may not be sustainable, urging the government to support innovation and value addition within the industry to maintain momentum and develop a robust cocoa culture.

Keywords: Nigeria, cocoa exports, naira depreciation, global demand, price rally, production, agricultural exports, cocoa industry.