On June 3, 2025, Vice President Kashim Shettima announced Nigeria’s ambition to transition from raw cocoa production to becoming a global leader in cocoa processing, speaking at the Cocoa Value Chain Summit in Abuja.
Nigeria, the world’s fourth-largest cocoa producer, exports 90% of its 280,000-tonne annual output unprocessed, generating $800 million but losing $2 billion in value-added revenue. Shettima unveiled a $500 million investment plan to establish 10 processing plants across Oyo, Ondo, and Cross River by 2027, aiming to process 60% of cocoa locally and create 100,000 jobs.
The initiative includes incentives like tax waivers for processors and $100 million in loans for smallholder farmers to boost yields, currently at 400 kg/hectare compared to Ivory Coast’s 600 kg. Shettima highlighted partnerships with firms like Mars Incorporated to produce cocoa butter and powder for domestic and export markets. However, farmers raised concerns about insecurity in rural areas, with 30% of Ondo’s cocoa farms abandoned due to banditry in 2024.
Critics argue the plan overlooks infrastructure gaps, like erratic power, which increases processing costs by 20%. The government’s target to double cocoa revenue to $1.6 billion by 2030 has sparked optimism, but success hinges on addressing these challenges and competing with Ghana’s established processing sector.
Discover more from RainSMediaRadio
Subscribe to get the latest posts sent to your email.
