By Christopher Ajewole 
Despite experiencing a peak in global coffee prices not seen in 14 months, coffee producers in Nigeria, the most populous nation in Africa, are finding it difficult to benefit from this increase due to a range of obstacles. These challenges include inadequate investment, capacity limitations, and substandard seed quality.
The recent rise in global coffee prices is largely due to unfavorable weather conditions impacting harvests in Brazil and Vietnam, the leading coffee producers worldwide. This situation has led to a worldwide deficit in the supply of coffee beans.
Nigeria cultivates both Arabica and Robusta coffee varieties. Domestically, the price for a kilogram of Arabica beans, primarily sourced from the Mambilla and Jos Plateau regions, ranges from N5,000 to N10,000, contingent on quality. Conversely, a kilogram of Robusta beans, mainly produced in Kogi and Oyo, is priced between N3,000 and N5,000.
Price Discrepancy
The price differences within Nigeria’s coffee sector are notably pronounced. Coffee farmers in Nigeria are receiving considerably lower earnings compared to their counterparts in other coffee-producing nations. For example, a ton of coffee beans in Nigeria is priced at approximately N4 million ($2,667), while in other countries, the same quantity is sold for about $5,609 (N8.4 million).
To provide further context, the following statistics are relevant:
· Global coffee prices: Arabica beans have reached $3.66 per pound, reflecting a 15% increase this year, while Robusta coffee has seen a 0.9% rise to $5,609 per metric ton.
· Nigerian coffee prices: The price for a kilogram of Arabica beans ranges from N5,000 to N10,000, whereas a kilogram of Robusta beans is priced between N3,000 and N5,000.
· Export prices: Over the past five years, Nigeria’s coffee export prices have fluctuated between $1.80 and $2.45 per kilogram.²
This price disparity carries significant consequences for Nigeria’s coffee industry, impacting the livelihoods of farmers and the nation’s competitiveness in the global market.
Challenges Confronting Nigerian Coffee Farmers
Experts in the industry have identified several key challenges that Nigerian coffee farmers face, including:
· Low Investments: A lack of sufficient investment in coffee production, processing, and marketing stifles the sector’s development.
· Capacity Gaps: Limited access to training, technology, and extension services restricts farmers’ potential to enhance productivity and quality.
· Poor Seed Quality: The reliance on inferior seeds negatively impacts crop yields and quality, hindering farmers’ competitiveness in the global market.
Growing Demand, stalled production
Nigeria’s youthful demographic, representing around 63% of the nation’s 200 million inhabitants, is significantly contributing to an increased demand for coffee products. This surge in demand offers a promising opportunity for local coffee farmers and processors.
Nevertheless, in spite of this rising demand, coffee production in Nigeria has stagnated. The sector has experienced a consistent decline in output, attributed to unappealing prices, substandard bean quality, and insufficient investment.
Key Statistics:
· Increasing Demand: Coffee consumption in Nigeria is expanding at an annual rate of 5%, fueled by the country’s youthful and urbanizing populace.
· Production Stagnation: Coffee production in Nigeria has decreased from 30,000 tons in 2015 to 20,000 tons in 2020.
· Importation: To satisfy the escalating demand, Nigeria imports a considerable amount of coffee, with annual imports exceeding N10 billion (approximately $26 million).
The inferior quality of coffee beans in Nigeria has rendered them unappealing to local processors, who are reluctant to offer higher prices. In response to this issue, the Cocoa Research Institute of Nigeria is providing training to farmers on effective handling and processing methods for their coffee beans.
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