From Badagry to the world: Nigeria’s coconut industry can help strengthen naira

In the tranquil town of Badagry, Lagos State, Adeola Ogunleye, a third-generation coconut farmer, walks through her plantation as the morning sun casts its golden glow.

Her steps are deliberate, her gaze unwavering as she inspects the towering coconut palms her family has cultivated for decades. Her machete glints in the sunlight as she harvests a ripe fruit, envisioning a future far brighter than the present.

“For too long, we’ve only seen these coconuts as food for the local market,” she says, her voice firm with conviction. “But why can’t Nigeria’s coconuts be in demand in America, Europe, or Asia, just like our oil once was?”

Adeola’s dream is not far-fetched. Across the globe, countries like Sri Lanka and the Philippines have turned their coconut industries into billion-dollar sectors, driving exports, creating jobs, and boosting their economies.

Adeola believes Nigeria can do the same, transforming its underutilised coconut industry into a global powerhouse that strengthens the naira and drives sustainable economic growth.

The Global Coconut Boom and Sri Lanka’s Success

Coconut products have become a global phenomenon. From health-conscious consumers embracing coconut oil as a natural alternative to cooking oils, to the growing popularity of coconut milk, water, and even cosmetics, the demand has skyrocketed.

According to Allied Market Research, the global coconut products market was valued at $11.5 billion in 2020 and is projected to reach $31.1 billion by 2030, growing at a compound annual growth rate (CAGR) of 10.9 per cent.

Sri Lanka is one of the countries reaping the rewards of this global demand. In 2022, the country exported over 71 million kilogrammes of fresh and dried coconuts, with the United States as one of its largest markets. Coconut products account for 12 per cent of Sri Lanka’s total agricultural exports, contributing significantly to its foreign exchange reserves.

What’s their secret? Strategic investments in farming techniques, modern processing facilities, and strict adherence to international quality standards. The result? A steady flow of high-value coconut products that meet global demand.

Nigeria’s Untapped Potential

Nigeria ranks 19th among coconut-producing nations, with an annual production of approximately 224,186 metric tonnes. Yet, this is only a fraction of its potential.

With over 360,000 hectares of land suitable for coconut farming and a tropical climate ideal for cultivation, Nigeria has the resources to rival global leaders like Sri Lanka and the Philippines.

Recognising this potential, the Nigerian Coconut Producers, Processors, and Marketers Association (NICOPPMA) and the Federal Government have set ambitious targets.

By 2025, they aim to increase production to 500,000 metric tonnes—a 123 per cent increase. This growth would not only enhance local consumption but also position Nigeria as a significant exporter of coconuts and their derivatives.

Economic Benefits for Nigeria

Expanding the coconut industry could have transformative economic impacts:

1. Boosting Foreign Exchange Earnings:

Experts estimate that Nigeria could generate over ₦20 billion annually in foreign exchange through coconut exports alone. This influx of revenue would bolster foreign reserves, providing a cushion for the naira amidst global economic uncertainties.

2. Job Creation:

Coconut farming and processing have the potential to create millions of jobs across the value chain—from farming and harvesting to processing and export logistics.

3. Rural Development:

Coconut farming thrives in coastal and rural areas, offering these communities an opportunity to improve their livelihoods while contributing to national development.

4. Environmental Benefits:

Coconut trees are known for their carbon-sequestering properties, making them a valuable crop in combating climate change and promoting sustainable agriculture.

Challenges and Strategic Steps Forward

While the potential is enormous, Nigeria faces several challenges in scaling its coconut industry. These include outdated farming methods, limited access to modern processing facilities, and inadequate infrastructure for exports.

To overcome these hurdles, the following steps are crucial:

1. Research and Development:

Investments in pest-resistant coconut varieties and improved farming techniques will ensure higher yields and better-quality coconuts.

2. Processing Facilities:

Establishing modern facilities to produce high-demand products like virgin coconut oil, coconut milk, and activated charcoal will add value and increase export competitiveness.

3. Market Access:

Nigerian exporters must meet international standards for packaging and quality to compete in global markets.

4. Government Support:

Policies that provide financial incentives to farmers and exporters, coupled with infrastructure development, will accelerate industry growth.

5. Public-Private Partnerships:

Collaboration between government agencies, private investors, and international stakeholders can drive innovation and open up global market opportunities.

A Future Beyond Oil

As Nigeria seeks to diversify its economy and reduce dependence on oil, coconut farming presents a viable path forward. Farmers like Adeola Ogunleye represent the untapped potential that lies in Nigeria’s soil. With strategic investments and a clear vision, Nigeria’s coconuts could become as valuable to its economy as crude oil once was.

“I dream of the day when people in America will open a jar of Nigerian coconut oil or sip coconut water from our farms,” Adeola says with a hopeful smile. “When that day comes, we won’t just be strengthening the naira; we’ll be empowering farmers like me to build a better future for our families and our country.”

Nigeria’s coconut revolution has already begun. The question is: Will the nation seize this opportunity to create a legacy of economic growth and resilience?