Cocoa Farmers Lament Price Crash, Seek Government’s Intervention
- Cocoa prices in Nigeria dropped by about 70% between late 2024 and early 2025
- Many farmers are struggling with debts after expanding during the price surge
- Global market dynamics and lack of regulation are contributing to the sector’s challenges
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Cocoa farmers and industry stakeholders in Oyo, Ogun and Kwara states have expressed concern over the sharp decline in cocoa prices, describing the development as a major setback for the sector.
According to a survey by the News Agency of Nigeria (NAN), cocoa prices fell by about 70% from a peak of N2.5 million per tonne to around N700,000 between late 2024 and early 2025, affecting farmers’ incomes and investment decisions.
Source: Getty Images
Stakeholders call for cocoa board revival
Industry players are urging the federal government to revisit the Executive Bill submitted to the National Assembly in 2025 for the establishment of a National Cocoa Board.
They believe the absence of a central regulatory body has left the sector vulnerable to market shocks and weakened coordination across the value chain.
The President of the Cocoa Farmers Association of Nigeria (CFAN), Adeola Adegoke, said the recent price drop has reversed gains recorded over the years, noting that earlier price increases had attracted new investors and encouraged youth participation in cocoa farming.
He explained that many farmers expanded operations or acquired new farmlands during the boom period, but the downturn has forced some new entrants to exit the sector.
Rising costs worsen farmers’ burden
Adegoke noted that while cocoa prices have dropped significantly, the cost of farm inputs, labour and other production expenses has remained high.
He stressed the need for government intervention through subsidised inputs, improved seedlings, and access to finance to sustain production.
He also called for the development of climate-resilient cocoa varieties, noting that a significant percentage of current plantings fail to survive due to changing environmental conditions.
Lack of coordination blamed for challenges
Chairman of the Cocoa Processors Association of Nigeria (COPAN), Felix Oladunjoye, attributed the sector’s challenges to the absence of a coordinating institution since the dissolution of the Nigerian Cocoa Board in 1986.
He explained that although several private trade groups exist, none has the legal authority to regulate or stabilise the industry.
Oladunjoye added that global market factors, including reduced demand for chocolate, international conflicts, and post-pandemic economic pressures, contributed to the price decline.
He noted that excess cocoa supply in the global market and currency fluctuations also played a role.
Farmers face debt pressure amid falling income
In Ogun State, CFAN Board of Trustees Chairman, Olusesan Showunmi, said many farmers are currently under financial strain after taking loans to expand production during the price surge.
He explained that the sudden drop in prices has made it difficult for farmers to repay debts while covering operational costs.
Showunmi warned that continued price instability could push some farmers to switch to other crops, although he advised against abandoning cocoa farms due to their long-term investment nature.
Source: Getty Images
Calls for support and policy stability
Farmers and traders across the states called for improved access to credit, subsidised farm inputs, and stable policy frameworks to protect livelihoods.
A cocoa merchant in Abeokuta, Niyi Odeyale, said the price drop has negatively affected cocoa-producing communities, making it harder for farmers to meet basic needs.
Similarly, a farmer in Ilorin, Bashir Atanda, noted that while cocoa farming remains limited in Kwara, interest in the crop is growing and requires government support to reach its potential.
Terrorists attack Cocoa Research Institute, Ibadan
Legit.ng earlier reported that criminal gangs, locally known as bandits, abducted four individuals from the Cocoa Research Institute of Nigeria (CRIN), Ibadan, Oyo State, on Wednesday, March 18, 2026.
According to the Oyo State Police Command, upon receiving the report, Femi Haruna, the commissioner of police, directed the DPO of Idi-Ayunre, in collaboration with other security agencies and non-state actors, to conduct an intensive bush search, which led to the rescue of two of the victims.
The police told Legit.ng that one of the abductees is female, while the two rescued individuals are male.
Source: Legit.ng
