Coffee Stakeholders Urge Federal Government to Harness $2 Billion Potential in Foreign Exchange Earnings

Key players in Nigeria’s coffee industry are advocating for increased attention from the federal government to unlock the potential of coffee, a cash crop that could contribute over $2 billion in foreign exchange earnings to the country’s Gross Domestic Product (GDP).

The call comes in response to reports highlighting Nigeria’s absence among the top 10 coffee producers in Africa, with other nations such as Burundi, Cameroon, Côte d’Ivoire, Ethiopia, Guinea, Kenya, Madagascar, Rwanda, Tanzania, Togo, and Uganda taking the lead.

Stakeholders at the West Africa Specialty Coffee Association (WASCA) 2023 World Coffee and Tea Expo in Lagos emphasized the need for strategic investments, modernized farming practices, and value-added processing in the coffee industry. They believe that redirecting attention to non-oil products, particularly coffee, could bolster the country’s revenue, especially given the challenges faced by the oil sector.

The president of WASCA, Segun Lary-Lean, pointed out that Nigeria’s coffee exports remain modest, with an annual output of under one million bags. In contrast, Ethiopia, the largest coffee exporter in Africa, is projected to produce 8.25 million 60-kilogram bags.

Lary-Lean asserted, “The type of coffee we produce in Nigeria is what the rest of the world is looking for. We should be doing $2 billion annually.” He highlighted the vast potential for financial gains, job creation, and sustainable agricultural development if Nigeria strategically invests in its coffee sector.

While noting the global demand for coffee, Lary-Lean emphasized the disparity between Nigeria’s current coffee earnings of about $36 million and the potential $2 billion. He underscored that countries like Brazil, Colombia, and Vietnam have achieved substantial earnings in the coffee business, urging Nigeria to tap into this lucrative market.

The chairman of the National Coffee and Tea Association of Nigeria, Oyo State chapter, Salihu Imam, stressed the importance of coffee as a key cash crop, revealing Oyo State’s plans for massive coffee production in the next planting season. Imam urged banks to sponsor coffee production and called for a state of emergency in agriculture, advocating for affordable loans to boost agricultural commodities production.

As Nigeria possesses fertile land for coffee cultivation and a population of over 230 million, stakeholders believe that with proper funding and strategic initiatives, the country can position itself as a key player in the global coffee trade, contributing to economic growth and diversification.

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