Cocoa farmers and dealers across Oyo, Ogun, and Kwara states have bemoaned the sharp fall in the price of the commodity, describing it as unexpected and a major setback for the industry.
Cocoa prices in Nigeria reportedly plummeted by about 70 per cent, from historic highs of N2.5 million per tonne to about N700,000 per tonne in many parts of the country between late 2024 and early 2025.
In a survey conducted by reporters, stakeholders called for a review of the Executive Bill presented to the National Assembly in 2025 for the creation of a National Cocoa Board.
Those interviewed said the sharp price drop had forced faint-hearted investors and new farmers to cut their losses and exit the sector.
They urged the Federal Government to re-present the bill to the National Assembly to establish the cocoa board and sustain the industry.
Mr Adeola Adegoke, President of the Cocoa Farmers Association of Nigeria (CFAN), said, “We are back to where we started from.
“Between 2003 and 2024, the rise in cocoa prices created enthusiasm and better income, enabling farmers to send their children to school and improve their livelihoods.
“Many youths left urban areas to take up farming, rehabilitating abandoned farmlands. Investors also entered the sector massively, with about 10 per cent more farmers joining the industry,” he said.
Adegoke said the current price downturn has forced many new farmers out of the sector.
“The situation is not encouraging. When you invest, you expect good returns.
“If you go to the market, you will see that the prices of agro-inputs have not reduced despite the 70 per cent drop in cocoa prices,” he said.
He called for a fair and sustainable pricing regime that reflects the cost of production.
“Farmers must be supported. Any country that does not support agriculture is in trouble.
“The government should provide subsidised inputs, improved cocoa varieties, and invest in infrastructure to boost yields.
“We need climate-resilient varieties, as many current ones have low survival rates. Achieving higher yields, like in Brazil and Ecuador, requires proper investment,” he said.
Adegoke, who is also President of the Cocoa Farmers Alliance Association of Africa (COFAAA), questioned the status of the Executive Bill for the National Cocoa Board sent to the National Assembly in November 2025, noting that it was withdrawn for amendments and has not been revisited.
Also, Mr Felix Oladunjoye, Chairman of the Cocoa Processors Association of Nigeria (COPAN), attributed the price drop to the absence of a coordinating agency in the cocoa sector.
He said the problem dates back to the dissolution of the Nigeria Cocoa Board in 1986, which exposed the industry to multiple challenges.
“Currently, various trade organisations operate in the sector, but none has legal backing,” he said.
Oladunjoye, a member of the National Cocoa Management Committee (NCMC) inaugurated in 2025, said Nigeria lacks a central body to coordinate activities in the industry.
“At the federal level, we have not had a coordinating agency for nearly 40 years,” he said.
He added that global factors, including excess supply, reduced demand for chocolate due to conflicts, and lingering effects of COVID-19, contributed to the price crash.
“Prices surged to as high as N15 million per tonne in 2024 due to supply shortages but later dropped as global supply increased and demand weakened,” he said.
He noted that farmers who benefited from the boom now face financial strain, especially those who took loans.
In Ogun, Mr Olusesan Showunmi, Chairman of the Board of Trustees of CFAN, said farmers are under serious financial pressure following the price drop.
He explained that many expanded their farms and took loans during the boom, expecting sustained favourable prices.
“With the sudden drop, farmers are struggling to repay debts while covering the cost of inputs and labour,” he said.
Showunmi warned that if the trend continues, some farmers may switch to other crops.
However, he advised farmers not to abandon cocoa farming due to its long-term benefits.
“If farmers abandon their farms now and prices rise again, they will have nothing to sell,” he said.
He noted that Nigeria operates an open market system, unlike Ghana and Côte d’Ivoire, where commodity boards regulate cocoa trading.
He called for government support through affordable loans and modern farming equipment.
Also, Mr Niyi Odeyale, a cocoa farmer in Imeko-Afon Local Government Area of Ogun, said the price crash has negatively affected cocoa-producing communities.
“Many farmers now struggle to feed their families as their income has dropped significantly,” he said.
Despite the decline, he said most farmers are holding on and hoping for a price rebound.
Similarly, Mr Ahmed Balogun, a cocoa merchant in Abeokuta, urged government and financial institutions to provide stronger support, including access to credit, subsidised inputs, and stable market policies.
In Kwara, Mr Bashir Atanda, a farmer in Ilorin, described cocoa farming in the state as underdeveloped but growing.
He identified areas such as Ilemona and the Irepodun axis as cocoa-producing zones and called on both the federal and Kwara governments to support farmers to boost production.
