Cocoa In Nigeria: Everything You Need To Know + Exportation Guide

Cocoa, often referred to as "the food of the gods," is one of Nigeria's most significant agricultural exports. As the world's fourth-largest producer, and with an industry worth 700 million USD, Nigeria plays a crucial role in the global cocoa market. Among these, cocoa stands tall as a significant contributor to the country's economy. This article delves into the intricacies of the Nigerian cocoa industry, providing valuable insights for both existing and aspiring cocoa exporters.

Wondering the best platform to learn about exportation, get funding for your business and build a successful exportation business in Nigeria? Nexa is the right place for you! 

Nigeria's Position in the Global Cocoa Market

Nigeria is a powerhouse in the global cocoa market, producing approximately 300,000 metric tons of cocoa annually. The country's cocoa sector contributes significantly to its economy, providing employment for over 300,000 farming families predominantly located in the southwestern states of Ondo, Ogun, Osun, Ekiti, and Oyo.

Key Statistics

1. Global Rank: 4th largest cocoa producer
2. Annual Production: ~300,000 metric tons
3. Employment: 300 000+ farming families

Cocoa-Producing Regions in Nigeria

The southwestern region of Nigeria is renowned for its cocoa production. States such as Ondo, Ogun, Osun, Ekiti, and Oyo are the primary cocoa-producing areas, benefiting from favorable climatic conditions and rich soil.

Countries Importing Nigerian Cocoa

Nigerian cocoa is in high demand globally, due to the unmatchable quality of Nigeria’s cocoa seeds. Without fail, Nigeria exports to Europe, Asia, and the Americas. Eastern Europe, in particular, is a growing market for Nigerian cocoa, with countries like Ukraine and Poland being major importers.

Major Importing Countries 

1. Eastern Europe: Ukraine, Poland
2. Western Europe: Germany, Netherlands, Belgium
3. Asia: Malaysia, Indonesia
4. North America: United States, Canada

Key Products Derived from Cocoa Processing

Cocoa processing involves several steps that transform raw cocoa beans into a variety of products used in different industries, particularly food and cosmetics. Here are the primary products derived from cocoa processing:

1. Cocoa Beans: The raw form of cocoa, used for making all cocoa products. They can be roasted and ground to produce other cocoa products.
2. Cocoa Nibs: These are crushed cocoa beans, which are used as a crunchy ingredient in baking and snacks. They can also be ground to make cocoa mass.
3. Cocoa Mass (Cocoa Liquor): This is the paste made from ground cocoa nibs. It contains both cocoa solids and cocoa butter. It is used as a base for making chocolate.
4. Cocoa Powder: Produced by pressing the cocoa mass to remove most of the cocoa butter. The remaining cocoa solids are ground into a fine powder used in baking, beverages, and cosmetics.
5. Cocoa Butter: The fat extracted from cocoa mass. It is used in chocolate making to provide a smooth texture and in cosmetics for its moisturizing properties.
6. Chocolate: Made by combining cocoa mass with cocoa butter and sugar. Variations include milk chocolate, dark chocolate, and white chocolate, depending on the specific ingredients and proportions used.
7. Chocolate Syrup: A liquid form of chocolate used in beverages and as a topping for desserts.
8. Cocoa Extracts: Concentrated forms of cocoa used in flavorings and as ingredients in various food products and supplements.
9. Cocoa Butter Alternatives: Derived from cocoa butter for use in various food and cosmetic applications.
10. Cocoa Beans Flour: Ground cocoa beans that are used in baking and cooking as a flavorful ingredient.
11. Cocoa Oil: A byproduct of cocoa butter processing, used in cosmetics and skin care products for its emollient properties.
12. Cocoa Cake: The solid left after extracting cocoa butter from cocoa mass. It is ground into cocoa powder or used in formulations.

Future Market Projections

The global demand for cocoa is projected to grow steadily, driven by increasing consumption of chocolate and cocoa-based products. Nigeria is well-positioned to capitalize on this growth, with plans to increase production and improve processing capabilities. The government and private sector are investing in modern farming techniques, better seedlings, and advanced processing facilities to enhance cocoa quality and yield.

With the growth forecast of 4% annually and hundreds of millions of market worth, this is your chance to start your cocoa exportation business too.

Future Market Insights

1. Rising Demand: Global cocoa consumption is expected to rise by 3%  annually.
2. Investment Opportunities: Modernization of farming techniques and infrastructure.
3. Export Growth: Expansion into new markets and increasing market share in existing ones.
   

Opportunities in Cocoa Exportation

The cocoa export sector offers lucrative opportunities for entrepreneurs and investors. With the support of institutions like NEXIM, aspiring exporters can access funding, training, and market insights to succeed in the global market.

Why Become A Cocoa Exporter

1. High Demand: The global market for cocoa is increasing steadily, with more international country looking for exporters like you
2. Support Systems: Access to financing and training from NEXIM and NEXA.
3. Profit Potential: Competitive pricing and high profit margins.
4. Sustainability: Opportunities to engage in sustainable farming and fair trade practices.

NEXIM: Empowering Nigerian Exporters

The Nigerian Export-Import Bank (NEXIM) has been instrumental in supporting the non-oil export sector. As the founding entity of NEXA, NEXIM has funded numerous export businesses, helping them scale and compete globally. With tailored financial products, advisory services, and strategic partnerships, NEXIM ensures that Nigerian exporters have the resources they need to thrive.

Nexim's Achievements

1. Funding: Nexim has done over $1 billion in export funding, equipping willing Nigerian Cocoa Exporters to build a successful exportation business
2. Support: With the robust online community and learning hub, Nexa. You can equip yourself with impeccable knowledge about the cocoa exportation, and also get access to a robust communities of cocoa exporters. 
3. Impact: Nexim have contributed significantly to Nigeria’s non-oil revenue growth.

Join the Nigerian Export Academy (NEXA)

For those looking to delve deeper into the cocoa export industry, NEXA offers specialized courses designed to equip you with the knowledge and skills needed to succeed. Our comprehensive cocoa exportation course covers everything from farming practices to market entry strategies, ensuring you are well-prepared to navigate the complexities of the global market.

Ready to take your cocoa export business to the next level? Join our community of like-minded exporters and enroll in the cocoa exportation course at NEXA today. Visit our website to sign up and start learning from industry experts.

Seize The Opportunity Now! Become a Booming Cocoa Exporters

Cocoa exportation presents a significant opportunity for Nigerian entrepreneurs to tap into a lucrative global market. With robust support from NEXIM and comprehensive training from NEXA, you can confidently embark on your journey as a cocoa exporter. Stay informed, stay connected, and take advantage of the resources available to you through the Nigerian Export Academy.