Lack of quality seedlings is preventing Nigerian farmers and exporters from tapping a $38 billion global coconut market.
Nigerian farmers have been forced to produce merely 300,000 metric tonnes (MT) of coconuts, which are four times lower than over 1,200 MT demand, no thanks to low-quality seedlings.
The major problem is that some farmers plant substandard coconut seedlings, resulting in disappointing harvests.
“Nigeria is supposed to be sufficient in the production of most staples, but if farmers can’t access quality seeds and seedlings, we can’t increase production,” said Jude Obi, president of the Association of Organic Agriculture Practitioners of Nigeria (NOAN).
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According to him, the country is failing to grow enough food to meet local demand and exports owing to a combination of issues, including low-quality seeds and seedlings.
Ayopo Somefun, a farmer in Ogun State, said: “I visited a research institute to get seedlings for my farm and was told it wasn’t available. If the research institute mandated for the crop does not have improved seedlings, where do you then get it?”
Jimi Ogunde, an agric expert, said the use of low-quality seedlings and seedlings has exposed crops such as coconut to pests and diseases, noting that “crops obtained from poor parent plants inherit weak genetic traits and lack natural resistance and stamina against diseases.”
Opportunity
Nigeria spent over $500,000 importing coconuts between 2018 and 2019, according to the Food and Agriculture Organization (FAO).
Mufutau Ataseye, a professor of Plant Nutrition at the Federal University of Agriculture, Abeokuta (FUNAAB), said Nigeria can attract over $1 billion in foreign exchange from coconut if farmers have good seedlings and other required inputs.
“With the right environment and investment, the coconut industry could significantly reduce rural poverty and boost the economy, while attracting over $1 billion in FX,” he said during a phone conversation with BusinessDay.
Nma Okoroji, president of the National Coconut Producers, Processors, and Marketers Association of Nigeria (NACOPPMAN), pointed out that Nigeria’s coconut imports have risen by over 80 percent, underscoring the country’s inability to meet local demand.
“The coconut sub-sector is 80 percent untapped in Nigeria, and investing in it is investing in the future,” she said.
“We have not even scratched the surface of the coconut sub-sector in Nigeria,” she added.
For those considering the potential of this crop, Affiong Williams, CEO of Reelfruits, called it one of the best startup opportunities in Nigeria. “Growing coconuts semi-commercially can elevate low-income earners to the upper middle class in just five years—something only a few businesses can match,” she said.
Ebun Feludu, CEO of Kokari Coconuts, a processing company, underscored the lasting wealth creation potential.
“The coconut sector is not just profitable but can preserve wealth for generations. That’s why we add value to the product, tapping into the $38 billion value chain,” she stated.
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Why coconut?
The coconut is often hailed as the most versatile fruit on earth, with over 300 by-products to its name.
Its industrial applications span a wide range of sectors—health and wellness, beauty and cosmetics, food, and even pharmaceuticals, fuelling a growing global demand.
From coconut water, oil, and meat to flakes, flour, husks, and coir, the possibilities are endless. The health benefits are equally remarkable. Coconut water is known to help regulate blood sugar levels in diabetic patients, while coconut oil smoothes skin and promotes hair growth.
Karla Leal, an Indian-based dietitian, said that regular consumption of coconut meat can boost weight loss, improve digestion, strengthen the immune system, and regulate blood pressure.
Beyond its health benefits, coconut trees have low-maintenance cost and can yield for up to 60 years, offering long-term profits.
In an era of multiple impacts of climate change, coconuts stand out for their resilience to floods and droughts. They also improve soil structure, sequester carbon, and act as effective windbreaks, making them an eco-friendly investment for the future.
What the numbers say
Nigeria ranks as the 20th largest coconut producer globally, with an annual output of about 300,000 MT.
In Africa, Ghana (504,000 MT) and Tanzania (479,000 MT) lead the charge. Globally, Indonesia (17.2 million MT), the Philippines (14.9 million MT), and India (13.3 million MT) dominate the market, according to recent FAO 2022 data.
Lagos is the heart of Nigeria’s coconut industry, accounting for roughly 70 percent of the country’s production. Other states include: Delta, Ogun, and Akwa Ibom among others.
In Lagos alone, there are about 200 registered processors.
St. Gabriel Coconut Refinery Ltd in Akwa Ibom State stands out as one of the largest coconut refineries in West-Africa. Spanning 11 hectares, the refinery processes around 66 metric tonnes of coconuts daily, requiring about one million coconuts each day to meet demand.
Hariratu Yakubu, founder of Doubletree Investment Hub, is also determined to revolutionise the sector by planting two million coconut trees across Kogi, Nasarawa, Abuja, and Jigawa.
“We aim to make Akwaibom refinery our primary off-takers,” she said, underscoring her ambition to reshape the industry.
NACOPPAN is equally driving growth through its Coconut Sufficiency in Nigeria (COSIN) initiative, targeting the planting of 10,000 coconut trees by 2027. Meanwhile, the Lagos State government plans to rehabilitate its coconut belt, with a bold goal of planting 10 million trees, aiming to generate N200 billion annually.
The coconut industry in Nigeria is on the cusp of a major transformation, with increased production, innovative initiatives, and growing market potential.
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Way forward
Coconut is an important opportunity, but it is yet to be fully tapped in Nigeria.
According to Ogunde, earlier quoted, what is lacking are research institutes that will enable farmers to have access to improved seedlings.
“Research institutes should provide high-quality and disease-resistant coconut seedlings to farmers. That is why they were set up. They need to work with several global institutes to identify emerging problems and their solutions,” he said.
He also stressed the need to fund the institutes to enable them to fulfil their roles.
“The government must raise the funding of these institutes. We can’t continue to have farmers run their food business on luck and prayers. The government must step in and provide funds needed for research.”
Another expert stressed the need for exchange of research output between Nigerian research institutes and their global peers.
Others emphasised the need for a unified national strategy to address the problem of inferior seedlings and other challenges.
Key recommendations include investing in research to improve seedling distribution, incentivising commercial plantations, expanding access to mechanized tools, and ensuring farmers receive the proper training.
“Farmers should also be given land incentives while supporting them with the necessary training and input materials to encourage private involvement,” said Ataseye, a professor, earlier quoted.
