Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
Cocoa farmers across Nigeria are facing a severe financial crisis following a sharp 70 percent drop in cocoa prices. This sudden collapse has left many farmers heavily in debt, unable to cover costs, and uncertain about the future of their livelihoods. Key cocoa-producing states such as Ondo, Osun, and Ekiti have been particularly affected, with farmers reporting that prices have fallen from around 14,500 naira per kilogram in early 2025 to between 2,000 and 2,500 naira in early 2026.
The steep decline comes after a period of high prices driven by supply shortages in major West African producing countries. As production normalized in 2025 and 2026, global cocoa prices dropped sharply, transmitting directly to Nigeria’s liberalized market where farmers are exposed to international price swings without guaranteed minimum rates. Many smallholder farmers, who make up the majority of Nigeria’s cocoa sector, expanded production and took loans during the boom years. The crash has left them struggling to repay debts and maintain their farms.
Farmers also face rising input costs for fertiliser, labour, and farm maintenance, which have remained high despite falling market prices, further squeezing margins. Local buying agents have reduced purchases due to unprofitable trade, disrupting supply chains and limiting farmers’ access to buyers. This has raised concerns that some producers may abandon cocoa farming entirely, threatening rural livelihoods and the economic stability of cocoa-dependent communities.
The crisis highlights structural weaknesses in Nigeria’s cocoa industry, including ageing plantations, limited investment, inadequate infrastructure, and fragmented marketing channels. Unlike some neighbouring countries that provide price support or intervention mechanisms, Nigerian farmers are fully exposed to global market fluctuations. Analysts warn that unless urgent measures are taken, the sector could face a long-term decline in production and competitiveness.
Economic advocates have called on the government to stabilize farmgate prices, expand access to affordable credit, support productivity improvements, and strengthen local processing to capture more value domestically. Without intervention, the downturn could undermine export earnings, reduce employment in cocoa-related industries, and weaken rural economies dependent on the crop.
For now, cocoa farmers are grappling with mounting debts and an uncertain future, emphasizing the urgent need for policy action to protect their livelihoods and ensure the sustainability of Nigeria’s cocoa sector.
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