Nigeria’s Cocoa market values over $6bn — Stakeholders

As the cocoa business continues to thrive, stakeholders say the cocoa market in Nigeria comprises 250,000 tonnes in volume, valued at over $6 billion, with international market prices influencing the figure.

According to them, currently, cocoa prices have risen to $10,000 per tonne, potentially increasing the market value to around $25 billion.

They spoke at the 25th Anniversary and Awards Ceremony of Starlink Global & Ideal Ltd. in Lagos.

Supreme News reports that Starlink Global & Ideal Ltd is the biggest non-oil exporter in Nigeria, priding itself as a company of choice, delivering unequalled benefits to all stakeholders.

It is a big contributor to Nigeria’s GDP and assists in strengthening the naira through foreign earnings.

Alhaji Adeyemi Adeniji, Chief Executive Officer, Starlink, noted the growth of other commodities like cashew, soya bean, and black seed, emphasising that Nigeria’s capacity, population, and land resources could be harnessed to ensure growth of GDP.

Speaking to newsmen on the sidelines of the event, Adeniji called for the government’s investment in policies to support industrialisation through backward integration.

“The cocoa market, in terms of volume, is just about 250,000 tonnes, but in terms of value in dollars, it is about $6 billion or more, depending on the price of the international market.

“Today, the international market price of cocoa has risen to $10,000 per tonne.

“It’s about $25 billion now that can come to Nigeria from cocoa export,” he said.

According to him, Nigeria has huge yields in cashews, soya beans, sesame seeds, black seeds, and sunflower seeds, noting that the commodities can be leveraged for economic growth.

Adeniji said the company has partnered with Odu’a Investment, which manages 25,000 hectares of land across West Africa, aiming for backward integration over the next five years with significant investment.

He said the company had identified two pilot sites, each covering 5,000 hectares, with plans to scale up operations over time.

In addition, Adeniji said the company had acquired the largest cocoa processing factory in Nigeria, set to commence operations by April 2025, aiming to produce chocolate and cocoa drinks.

Also, the Chairman of Odu’a Investment Group, Chief Bimbo Ashiru, discussed Nigeria’s strategy to transition from an oil-dependent to an agricultural-based economy.

He said the Minister of Trade and Investment was working to attract investors and improve the ease of doing business, with a goal of generating over a trillion dollars annually from agriculture.

According to him, Nigeria aims to re-establish cocoa production, which was a significant export in the 70s, to ensure food security and export surpluses.

He also said the establishment of a South West agro country was part of this initiative, with a focus on cash crops including cashew and cocoa and developing a value chain to lead industrialisation by producing both raw materials and finished products.

“The strategy is to make Nigeria non-oil dependent. We have so much in agriculture that leads to industrialisation.

“Nigeria has no business being an import-dependent economy.

“We should be exporting more, and the strategy is over a trillion dollars a year so that once we have that, we’ll be less dependent on oil.

“The point is this: as a country, Nigeria was the second largest exporter of cocoa in the world in the 70s.

“We went wrong when we found oil. But now we should go back to that basis and start doing that, and that is the focus, and that’s what we are looking at now in Nigeria,” he said.

Ashiru emphasised that leveraging agriculture would boost food production, non-oil exports, and diversification of the economy.

Commenting, Mr. Olusegun Obasanjo, National Coordinator, Nigeria, on the African Continental Free Trade Area (AfCFTA), celebrated the company’s growth, impact on Nigeria’s economy, and its potential in the AfCFTA.

He encouraged the company to evolve into an export trading firm, leveraging agreements like the AfCFTA and the Afreximbank framework.

Obasanjo also highlighted the role of the private sector in driving economic growth, challenging stakeholders to use their connections to build Nigeria’s export trading capabilities.

He noted this would unlock the continent’s full potential for growth, job creation, and development.

“Companies like Starlink Global have a chance to perform incredibly well, and I’ve told them they should see themselves as an export trading company and not only in commodities.

“We are looking at process and finished goods now all across the value chain, and that’s the future of growth in Africa.

“So, I’m challenging you with all the partners you have and all the friends you have made. Let us use that as the first Nigeria export trading company in Africa.

“Together, we can unlock the full potential of the AfCFTA to drive growth, job creation, and economic development in Africa,’’ he said.