News in brief:
– Nigerian coffee farmers are missing out on the global price surge due to poor investment, low-quality beans, and lack of government support.
– While Kenya, Ethiopia, and Rwanda benefit from coffee exports, Nigeria’s production remains low, with zero exports recorded in 2024.
Coffee farmers in Nigeria are missing out on the recent surge in global coffee prices due to structural deficiencies, low investment, and poor seed quality. While coffee growers in Kenya, Rwanda, and Ethiopia are capitalizing on the global price rally, their Nigerian counterparts are grappling with stagnant local prices and declining production.
Global coffee prices reach a 14-month high but Nigerian coffee prices fall behind
A global shortfall caused by adverse weather in Brazil and Vietnam—the world’s top two coffee producers—has driven coffee prices to a 14-month high. Arabica coffee, which makes up most of the global production, recently hit $3.66 per pound, marking a nearly 15% rise this year. Meanwhile, Robusta coffee, commonly used for instant coffee, climbed to $5,609 per metric ton, according to Reuters.
Nigeria produces both Arabica and Robusta coffee, yet its farmers struggle to match global prices. Arabica, grown mainly in the Mambilla and Jos Plateau regions, sells for between ₦5,000 and ₦10,000 per kilogram. Robusta, cultivated in Kogi and Oyo, fetches between ₦3,000 and ₦5,000 per kilogram, translating to an average of ₦4 million ($2,667) per ton. This is significantly lower than the $5,609 (₦8.4 million) per ton earned by farmers in other coffee-producing nations.
Hassan Usman, president of the National Coffee and Tea Association of Nigeria, lamented that Nigerian farmers are unable to benefit from the price rally. “Local prices are not attractive, and it has been a disincentive for us to grow more of the commodity,” he said.
Challenges plaguing the industry
Coffee, alongside cocoa and cotton, was a key foreign exchange earner for Nigeria in the 1960s and 1970s. However, the industry has suffered from government neglect, making it difficult for farmers to expand production.
“If we truly want to boost our non-oil revenue, coffee offers a great opportunity,” Usman added. “It is the most consumed commodity after crude oil.”
Industry experts highlight several structural issues stifling Nigeria’s coffee sector. Kayode Oluyole, assistant director at the Coffee Research Programme of the Cocoa Research Institute of Nigeria, noted that unattractive local prices have made expansion unfeasible for farmers. “The country’s coffee production has been on a steady decline,” he said.
Poor processing practices also contribute to low-quality beans, reducing their value in both local and international markets. “Most farmers do not remove the berries from the seed immediately after harvest; instead, they dry them together,” Oluyole explained. “Processors will not pay a premium price for that because they incur extra costs to remove the dried berries from the beans.”
Due to the quality gap, a significant portion of coffee consumed in Nigeria is imported from neighboring African countries and China.
Falling production and zero Exports
Nigeria’s coffee production, which peaked in the 1960s, has plummeted in recent decades. The country produced only 1,844 metric tons of unroasted coffee in 2023, with an average yield of 500kg per hectare, according to the Food and Agriculture Organization (FAO). The National Bureau of Statistics (NBS) reported zero coffee exports in the first nine months of 2024.
By contrast, Ethiopia and Kenya—countries with significantly smaller populations—produced 559,400 and 53,519 tons of coffee in 2023, earning $1.43 billion and $296.8 million from exports, respectively.
Experts believe that without government support, Nigeria’s coffee sector will continue to lag behind. Adeyinka Tekenah, CEO of Happy Coffee, criticized the government’s failure to invest in coffee production. “The industry hasn’t attracted any investment in the last 10 years,” she said. “There are no incentives for farmers to continue growing coffee.”
As global coffee demand continues to rise, Nigerian farmers risk being left behind unless urgent measures are taken to revamp the sector. Without investment in better seedlings, training, and processing facilities, the country may continue missing out on the lucrative global coffee market.
