Nigeria cocoa output seen rebounding

Nigeria's cocoa sector is bracing for a significant boost in the upcoming season, with outputs expected to surge to between 300,000 and 320,000 tons. This projection marks a sharp increase from the previous season. Akilawi, the Executive Director at FTN Cocoa Processors, emphasized the positive implications of this growth for both the sector and the broader economy. The shift towards emphasizing the non-A sector by the government has played a pivotal role in driving this progress. The increase in output is anticipated to address the challenges facing local processors, such as the need to import inputs due to insufficient domestic supply. Despite the positive outlook, concerns loom over the impact on global cocoa prices and the challenges imposed by the fluctuating exchange rate in Nigeria. The local market dynamics, characterized by several dominant players without clear pricing regulations, also present hurdles for stakeholders. Akilawi highlighted the urgency of intervention to manage these complexities effectively. The future price trends are subject to various factors, including market dynamics and consumption patterns. Despite the anticipated surge in output, the market is expected to take time to absorb these changes fully. Overall, the projected growth in Nigeria's cocoa sector signals promising opportunities for stakeholders, but also calls for strategic interventions to navigate challenges and harness the sector's full potential.