Cocoa is a unique crop grown by those who rarely consume it and consumed by those who do not grow it. West and Central Africa produce approximately 75% of the world’s cocoa, yet only 14% is processed on the continent, and just 2% of global production is consumed there. According to research, the global cocoa market is projected to reach $14.57 billion by 2026, driven by an increasing demand for chocolate worldwide, particularly in Eastern Europe and Latin America
Nigeria’s Role in the Global Cocoa Market
As Nigeria’s leading agricultural export, cocoa plays a crucial role in the economy, supporting thousands of smallholder farmers. Currently, Nigeria ranks as the seventh-largest cocoa producer in the world, following Ivory Coast, Ghana, Indonesia, Ecuador, Cameroon, and Brazil. It is also the third-largest cocoa exporter, after Ivory Coast and Ghana.
However, many Nigerian farmers face financial exclusion despite cocoa’s economic importance. They struggle with limited access to credit, lack of collateral, and an inability to secure investments. These financial barriers prevent them from scaling their production, adopting modern agricultural techniques, and increasing their yield potential.
Challenges Facing Nigerian Cocoa Farmers
Historically, Nigeria’s economy relied heavily on cocoa exports, contributing significantly to foreign exchange earnings between the 1950s and mid-1960s. However, after a shift toward oil dependency in the 1970s and 1980s, cocoa production declined. By 1986, cocoa exports fell to 150,000 metric tons, reducing Nigeria’s market share to just 6%. Recent data from the International Cocoa Organization (ICCO) reveals that cocoa production in Nigeria has fluctuated between 250,000 and 320,000 metric tons over the last five years, dropping to 245,000 metric tons in the 2018/2019 season.
In addition to market volatility, cocoa farmers struggle with low yields and financial constraints. The Cocoa Research Institute of Nigeria estimates that yield potentials range from 1.5 to 2 tons per hectare, yet most Nigerian farmers produce less than 500 kilograms per hectare (ICCO, 2022). Intervention programs have been introduced to boost productivity, but without access to formal financial services, smallholder farmers remain stuck in a cycle of subsistence farming. Many rely on informal lending sources such as moneylenders, relatives, and cooperatives.
Benefits of Asset-Based Financing for Cocoa Farmers
Access to Capital: Farmers can invest in high-quality inputs and modern irrigation systems. Improved Productivity: Better financial access enables the adoption of improved farming techniques.
Reduced Risk: Farmers no longer need traditional collateral to secure loans.
Stronger Rural Economies: Increased agricultural production translates into economic empowerment for farming communities.
Heabron: Empowering Cocoa Farmers Through Financial Inclusion
Heabron is making a difference by providing structured financial support. We help smallholder farmers access credit and build sustainable livelihoods. With the right financial tools, Nigerian cocoa farmers can thrive, boosting both local and global markets.
Join us in revolutionizing rural finance and transforming the cocoa industry!