MARKET NEWS

By Kingsley Jeremiah, Abuja

Stakeholders, yesterday, insisted that Nigeria can increase cocoa production to 900,000 to raise its earnings from about $3 billion to $9 billion as British International Investment (BII), the United Kingdom’s development finance institution and a Nigerian signed $40.5 million investment.

While Nigeria currently produces about 300,000 metric tons of cocoa yearly, the commodity has been rising, trading at $10,198 per metric tonne.

Stakeholders at the signing ceremony in Abuja said Nigeria’s current production could move to 900,000 metric tonnes given the country’s land opportunity.

The deal with Premium Cocoa Products, Ile-Oluji, a subsidiary of Johnvent Group, is expected to help the firm increase production capacity from 13,000 to 30,000 metric tonnes per year.

Speaking at the company event, British Deputy High Commissioner, Jonny Baxter, described the deal as part of a commitment by the European country to invest in sustainable development in Nigeria.

Such a move, Baxter said, would drive job creation and economic growth, adding that investment would strengthen Nigeria’s cocoa industry and expand its export potential.

BII’s Head of Nigeria Office, Benson Adenuga, noted that the investment would address key barriers to the sector’s growth, benefiting local farmers and enhancing Nigeria’s global competitiveness.

“We are committed to supporting black-owned and led businesses in Africa, ensuring they access the capital needed to scale and innovate,” he added.

Executive Director of the Cocoa Research Institute of Nigeria, Dr Patrick Adebola, disclosed that the surging price of cocoa is an incentive to increase production to about 900,000 metric tons per year.

According to him, the number of hectares of land Nigeria has is enough to produce 900,000 metric tons or even more.

“Today, cocoa farmers are smiling to the bank. By this time last year, the price of cocoa was about $1,800. Today, we know what the price is. And I can tell you that most small-scale farmers producing this important commodity are smiling at the bank. They are smiling to the bank,” he said.

Johnvents Group Managing Director, John Alamu, said the partnership was a major step in building a sustainable agribusiness sector.

“This investment empowers farmers, strengthens local processing and contributes to Nigeria’s broader economic development.

“We are delighted to partner with Johnvents Group to address critical barriers to the growth of Nigeria’s cocoa industry with a $40.5m investment. Not only will this benefit local farmers, but it will also improve Nigeria’s trade balance and global competitiveness through increased exports.

“The investment underlines BII’s commitment to backing ambitious Black-owned and led domestic champions that provide innovative solutions to key bottlenecks in strategic sectors,” he stated.

The Managing Director and Head of Africa at BII, Chris Chijiutomi, said agriculture accounts for a quarter of Nigeria’s gross domestic product (GDP) and employs over 70 per cent of its population, therefore supporting farmers in implementing sustainable practices and ensuring fair wages remained critical.