Nigeria’s coffee industry has the potential to generate over $2bn annually, according to industry insiders. Despite not being among the top 10 coffee producers in Africa, Nigeria’s foreign exchange reserves have declined significantly since President Bola Tinubu’s administration took office. The country’s coffee exports are modest, with an annual output of under one million bags. However, with the right initiatives, Nigeria could position itself as a key player in the global coffee trade, contributing to economic growth and diversification. The country’s coffee exports are expected to increase significantly.
A study by the Cocoa Research Institute of Nigeria has revealed a decline in coffee production and exports across Africa, with about N1.5bn worth of coffee products imported into Nigeria between 2010 and 2015. Factors contributing to this decline include a lack of technical knowledge on high-yielding, disease-resistant varieties, challenges posed by drought and climate change, ageing coffee trees, inadequate agronomic practices due to weak extension services, and a drop in the global coffee market. Experts suggest Nigeria should declare a state of emergency in agriculture and direct the Central Bank to ensure commercial banks give out soft loans of no more than 2% annual interest to farmers to boost agricultural commodities production. The government should also get involved in coffee production, coffee cropping, and cultivation.
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