Despite a sharp rise in global coffee prices, Nigerian coffee farmers fail to reap the benefits due to limited investment, low-quality seeds, and poor processing practices. While producers in Kenya, Rwanda, and Ethiopia thrive, generating significant foreign income and job opportunities, Nigeria’s coffee industry lags behind.
Global coffee prices have soared following adverse weather conditions in Brazil and Vietnam, the world’s two largest producers. Arabica beans, prized for their premium quality, have hit a 14-month high at $3.66 per pound. Robusta, commonly used in instant coffee, has also increased by 0.9% and is now priced at $5,609 per metric tonne.
Nigeria cultivates both Arabica and Robusta varieties. Arabica, grown mainly in the Mambilla and Jos Plateau regions, sells for between N5,000 and N10,000 per kilogram. Robusta, produced in Kogi and Oyo States, fetches between N3,000 and N5,000 per kilogram, with an average metric tonne selling for N4 million ($2,667). This is significantly lower than the global benchmark price of $5,609 per tonne, leaving Nigerian producers earning about N4.4 million ($2,942) less per tonne than their international counterparts.
According to the Food and Agriculture Organisation (FAO), Nigeria produced 1,844 metric tonnes of unroasted coffee in 2023, with an average yield of 500 kg per hectare. However, the National Bureau of Statistics (NBS) reported zero coffee exports in the first nine months of 2024, highlighting the sector’s ongoing struggles.
Industry experts point to processing inefficiencies as a major barrier. “The low quality of Nigerian coffee beans makes it difficult for processors to pay premium prices,” explained an industry player, Oluyole. “Many farmers do not properly process their beans, leaving the berries attached to the seeds. This adds extra processing costs and discourages buyers.”
Adeyinka Tekenah, CEO of Happy Coffee, added, “There are no incentives for farmers to continue growing coffee, and government investment in the sector has been non-existent for over a decade.”
Experts warn that without immediate government intervention, Nigeria risks missing out on the coffee sector’s economic potential. Neighbouring countries are already capitalising on this opportunity amid the global price boom.
Source: Business Day
