…Boom Has Positive Implications for Nigerian Economy
By Ali Elias
“I reluctantly went into cocoa and kola nut farming after secondary school in 2005 because I struggled academically,” Afolabi said. “I used to envy my classmates who pursued white-collar jobs, but today, I can confidently say I made the right decision. Many of them are retiring from government jobs with gratuities that don’t match what I earned this season alone.”
Farmers in Oyo State are celebrating a record-breaking cocoa farming season, with many witnessing unprecedented profits from their harvests. The News Agency of Nigeria (NAN) reports that cocoa prices surged in 2024, tripling the earnings of local farmers compared to the previous season.
Speaking to NAN in Ibadan on Wednesday, several cocoa farmers described the 2024 farming season as their most profitable yet. Many reported substantial improvements in their living conditions, with some investing in new homes, vehicles, and other assets.
Cocoa Prices Skyrocket Despite Production Challenges
Chief Nurudeen Alimi, a cocoa farmer from Elede Ominigbo Village in Ibarapa North Local Government Area, revealed that he harvested over 860 kilograms of cocoa beans. He noted that while cocoa beans sold for between ₦2,800 and ₦4,000 per kilogram in December 2023, prices soared to ₦12,000 per kilogram by mid-December 2024.
Despite battling crop diseases like black pod and cocoa swollen shoot virus, Alimi stated that the financial gains from this season exceeded his earnings from the past five years combined. “This season alone has allowed me to begin constructing a four-bedroom house in Eruwa and significantly improve my quality of life,” he said.
Similarly, Mr. Tiamiyu Afolabi, a cocoa farmer from Ore farm settlement, described the price hike as a blessing. He disclosed that he made over ₦25 million from his cocoa farm this season.
“I reluctantly went into cocoa and kola nut farming after secondary school in 2005 because I struggled academically,” Afolabi said. “I used to envy my classmates who pursued white-collar jobs, but today, I can confidently say I made the right decision. Many of them are retiring from government jobs with gratuities that don’t match what I earned this season alone.”
For Mr. Taofeek Adesola from Erunmu in Egbeda LGA, the booming cocoa trade has been life-changing. After losing his job in Lagos in 2020, he returned home to manage his late father’s cocoa farm. Today, he has renovated his father’s house in Lalupon and begun building his own, thanks to the income from cocoa farming.
Why Cocoa Prices Are Soaring
Cocoa produce buyer, Chief Ezekiel Olagunju, attributed the price surge to naira devaluation, which increased the naira income from cocoa exports. He also highlighted a shortfall in cocoa production from Ghana and Ivory Coast, the top cocoa-producing countries in West Africa, due to adverse weather conditions.
“As global demand for cocoa rises, Nigeria’s cocoa farmers are benefiting from the supply gap left by Ghana and Ivory Coast,” Olagunju said. He advised farmers to reinvest their earnings wisely to sustain long-term financial security.
Economic Implications for Nigeria
The cocoa boom in Oyo State is a positive development for Nigeria’s economy. As one of the country’s top agricultural exports, the surge in cocoa prices has boosted foreign exchange earnings and provided financial stability for thousands of farmers. With proper investment in modernized farming techniques and improved infrastructure, Nigeria could strengthen its position as a major global cocoa exporter.
Moreover, the increased income in rural farming communities translates to higher spending power, driving local economic growth. Farmers reinvesting in housing, transportation, and new plantations contribute to job creation and overall economic expansion.
As the government continues efforts to diversify the economy, the success of cocoa farmers in Oyo State underscores the untapped potential of Nigeria’s agricultural sector. With favorable policies and sustained investment, cocoa farming could become an even greater driver of economic transformation.