Boosting Nigeria’s cocoa yields

Nigeria, a country with vast potential in the cocoa industry, is set to see growth and innovation in its cocoa yields. According to the National Bureau of Statistics, cocoa was one of the most traded agricultural products in the fourth quarter of 2018 in Nigeria. However, the challenge lies in translating this high volume into sustained yields throughout the year. Akin Laoye, Executive Director of FTN Cocoa Processors, highlighted the opportunities and obstacles facing Nigeria's cocoa sector in a recent interview on CNBC Africa. Laoye emphasized that Nigeria has the capacity to match top cocoa-producing countries like Ghana and Cote d'Ivoire. With 22 states naturally capable of growing cocoa, he stressed the need for more focused government policies to drive the industry forward. Drawing a parallel with the success of Nigeria in rice production, Laoye proposed deliberate policies to replace old cocoa trees and cultivate new virgin grounds. By rejuvenating the aging cocoa trees, Nigeria can significantly boost its cocoa yields and compete on a global scale. The average lifespan of a cocoa tree is about 50 years, with optimal yields achieved around that age. Many of Nigeria's trees were planted in the 1960s, surpassing their prime years and resulting in declining yields. Laoye noted that by introducing improved varieties that start fruiting within 18-24 months, Nigeria can leverage higher productivity rates per hectare. However, to fully realize this potential, the country must address funding challenges and implement effective management practices across the value chain. Beyond raw cocoa beans, Laoye emphasized the importance of value addition and processing within Nigeria. Drawing a comparison with Ghana, where factories are incentivized before cocoa treatment, he advocated for government policies to support local chocolate production. By stimulating value addition activities, Nigeria can attract more investments and establish itself as a key player in the global cocoa market. Despite the opportunities for growth, Laoye highlighted key challenges facing the cocoa industry in Nigeria. High costs of borrowing and inadequate funding mechanisms hinder the sector's development. He called for access to affordable funding through government initiatives like single-digit interest rates. Additionally, Laoye underscored the need for effective industry management through commodity boards to improve quality control and boost yields. In conclusion, Nigeria's cocoa industry stands at a critical juncture, poised for growth and innovation. By implementing targeted policies, rejuvenating aging cocoa trees, and enhancing value addition processes, Nigeria can unlock its full potential as a leading cocoa producer in Africa. With concerted efforts from both the government and industry stakeholders, Nigeria can revitalize its cocoa sector and reap the economic benefits of a thriving cocoa market.