Nigeria appears to be missing in the $224 billion global coffee market due to a combination of aging trees, lack of investments and reduction in the number of farmers.
Coffee was once a major foreign earner for the country in the 1960s and 70s but the industry is now struggling amid surge in global prices.
Nigeria can’t be found in the list of coffee-producing nations, with Brazil, Vietnam, Indonesia, Ethiopia, India, Uganda, Colombia and India in the top 10.
Brazil’s coffee export in 2024 stood at $11.4 billion in 2024, according to the Observatory of Economic Complexity. Ethiopia earned $1.2 billion from coffee exports in eight months, according to the Ethiopian Coffee and Tea Authority (ECTA).
Coffee prices have risen in the past year due to the negative impact of unfavorable weather in Brazil and Vietnam, the world’s top two producers. Currently, the global coffee market is seeing some shortages on the back of challenges in the major producing nations.
Read also: Consumers face higher prices as global coffee costs surge 38.8%
Robusta, Colombian and Artaabica futures are currently trading above $4,000 a ton as against $2,000 a ton a few years back.
Experts say the coffee trees are now aging, with farmers unable to get funding for expansion.
Ibrahim Sadiq, former chairman, National Coffee and Tea Association of Nigeria (NACOFTAN), once told BusinessDay that one reason farmers were reluctant to go into coffee production in the past was low prices.
But the prices have now risen by over 50 percent from three to five years ago, and experts say the current price rally presents an opportunity for growers and processors of the beans in Nigeria.
Hassan Kakara, president of the National Coffee and Tea Association of Nigeria (NACOFTAN), told BusinessDay that Nigeria’s coffee industry is only marginally benefiting from the global price surge due to its relatively low production compared to industry giants like Ethiopia, Kenya, Rwanda, and Uganda.
“Nigeria’s coffee production is still low compared to these countries, so we’re not seeing the full benefits of the global price surge,” Kakara explained.
Richard Ali, legal adviser and industry stakeholder at NACOFTAN, said Nigeria is missing out on opportunities in the global coffee market.
“The international coffee market is structured in such a way that while prices have risen, the real gains are in the specialty or value-added coffee segment, from which Nigerian coffee entrepreneurs are largely excluded,” he said.
“While some will see profits, we’re still leaving a significant amount of value untapped,” he added.
The recent decline in coffee production in major countries like Brazil, Vietnam, and Indonesia, driven by adverse weather conditions, presents a massive investment opportunity in Nigeria’s coffee production, processing, and export value chain, experts say.
“With Brazil, Vietnam, and Indonesia facing production declines due to unfavorable weather, this is the perfect opportunity for Nigeria to step in and capitalise on the global shortages,” Kakara noted.
Yilshep Tsenyil, managing director of DashiAgro, re-echoed this sentiment, noting, “Nigeria has the perfect climate to grow coffee, yet we still import most of the coffee we consume.”
“With the global coffee market projected to be worth $100 billion,” he said, “more Nigerians should be growing coffee and tapping into this vast market.”
With an estimated two billion cups of coffee consumed annually and projections pointing to around 200 million bags being produced each year, there is a tremendous opportunity for the country.
“Nigeria’s coffee industry has a promising future if these opportunities are properly harnessed,” Kakara stated.
