Nigeria’s Cocoa Industry: A Pathway to Economic Diversification and Sustainable Trade
The Nigerian government has taken a strong stance on expanding its cocoa industry, ensuring that it meets the stringent requirements of the European Union Deforestation Regulation (EUDR). This move is aimed at positioning cocoa as a central element in the country's economic diversification strategy, promoting job creation, and fostering sustainable trade practices.
At the Nigeria-EU Cocoa Roundtable on EUDR Compliance held in Abuja, Kingsley Uzoma, the Senior Special Assistant to the President on Agribusiness and Productivity Enhancement, emphasized the importance of cocoa in Nigeria’s economic transformation. He described cocoa as a vital driver of the nation’s efforts to reduce reliance on petroleum and transition toward a more diversified economy.
According to data from the National Bureau of Statistics, there was a remarkable 606 percent increase in cocoa exports during the last quarter of 2024. The value of these exports rose from N171 billion in the final quarter of 2023 to N1.2 trillion. This growth highlights not only the rising global demand for cocoa but also the resilience and potential of Nigeria’s agricultural sector.
Uzoma further noted that cocoa is no longer just a commodity—it has become a strategic lever in the country’s economic transformation. It accounts for approximately 29 percent of total agricultural exports and 5.6 percent of non-oil exports. The government remains committed to agricultural sustainability, value addition, and meeting global trade standards under the Renewed Hope Agenda.
Meeting EUDR Requirements
The EUDR requires traceability, due diligence, and proof of deforestation-free supply chains. These requirements reinforce environmental stewardship and align with Nigeria’s green economy agenda, which aims to combat climate change, preserve biodiversity, and build resilient agricultural systems.
To meet these standards, the government is driving innovation in traceability technologies such as blockchain and satellite mapping. These tools are being used to support farmers by promoting sustainable practices and increasing yields without encroaching on forest areas.
Cocoa production supports over 300,000 smallholder farmers, who account for about 80 percent of the country’s output and contribute roughly 6 percent to the global supply. Nigeria aims to produce 500,000 tonnes of cocoa by 2025.
However, Uzoma pointed out that more needs to be done to establish effective compliance mechanisms. He highlighted financing constraints and urged innovative funding solutions, including the creation of a dedicated cocoa sector credit line with flexible repayment terms.
Institutional Coordination and Research
Institutional coordination is another key focus area. The government has begun formal engagement with the Raw Materials Research and Development Council to strengthen research and innovation across the cocoa value chain. Work is also underway to designate a government agency to manage cocoa sector data, ensuring transparency and reducing overreliance on private custodianship.
EUDR compliance presents an opportunity to transform the sector by boosting local processing, revitalizing plantations to achieve up to 50 percent higher yields, and tapping into climate finance and carbon credit schemes. The government is exploring options for effective partnerships to deploy digital compliance tools, farmer mapping systems, and traceability infrastructure that empower smallholders.
Private investors are encouraged to participate in the development of cocoa processing zones, where innovation and opportunity can combine to build sustainable and competitive supply chains.
Role of Technology and Government Support
The Minister of Trade and Investment, Olajumoke Oduwole, also spoke at the event, emphasizing the role of technology in ensuring compliance and boosting productivity. She mentioned the use of space technology to distinguish between different agricultural products, highlighting the critical role of the space agency in supporting Nigerian farmers.
Oduwole noted that the agency has empowered over 5,000 sites and developed more than 350 products, many of which are highly trained professionals from universities around the world. She stressed that for Nigeria, Africa’s fourth-largest cocoa exporter, compliance with EUDR is both a challenge and a transformative opportunity.
With the EU accounting for over 60 percent of Nigeria’s cocoa exports, compliance is essential for economic, environmental, and developmental progress. The government aims to support domestic farmers and investors while driving foreign exchange earnings, job creation, and food sovereignty.
Looking Ahead
Nigeria has a rich heritage in cocoa production, with an average annual output of nearly 320,000 tons over the past decades. With a clear policy roadmap, the country is poised to lead in sustainable agribusiness.
The goal is to forge a new era of strategic partnership where Nigerian cocoa becomes a global symbol of sustainability, innovation, and shared prosperity. Together, stakeholders can build a deforestation-free future that uplifts farmers, protects forests, and strengthens trade ties across continents.