Cocoa, Cashew, Groundnut, other lucrative cash crops in Nigeria

Nigeria is undoubtedly a country blessed with favourable climates and fertile lands that boast a wealth of cash crops, contributing immensely to the country’s economy. These cash crops are grown specifically for their economic value rather than for personal consumption.

Apart from generating income for the country, they can also address issues of unemployment, support rural communities, and offer valuable foreign exchange earnings, if properly harnessed.

The Food and Agriculture Organization of the United Nations (FAO) stated in 2020 that Nigeria loses no less than an estimated USD 10 billion to missed export opportunities for popular cash crops such as cocoa, cotton, and palm oil every year.

In this article, Tribune Online takes a look at some of these lucrative cash crops and the regions where they are predominantly cultivated.

Cocoa

In the entire world, Nigeria is the fourth-largest cocoa producer after Côte d’Ivoire, Indonesia, and Ghana. Hence, it is not surprising to see the crop topping the list. Cocoa is mostly found in states like Edo, Oyo, Osun, Ondo, Ogun, Cross River, Akwa Ibom, Ekiti, and Delta. Cocoa beans are used in the production of chocolate and other confectionery products, making it a highly demanded commodity in the international market. According to Statista, the revenue in the Cocoa market amounts to US$0.5bn in 2024 and is expected to grow annually by 13.00%.

Cashew

Nigeria is considered one of the top producers of cashew nuts globally. This particular type of crop is mostly cultivated in states such as Benue, Kogi, Kwara, and Enugu, among others. Thanks to the favourable Afro-climatic conditions of these regions, which support the growth of cashew trees, yielding high-quality nuts that are highly demanded in international markets.

The Federal Government through the former Minister of Agriculture and Rural Development, Dr. Mohammad Mahood Abubarkar revealed that Nigeria earned 250 million US Dollars from the export of cashew nuts in 2022.

Groundnut

This is yet another goldmine crop found abundantly in the country. The multipurpose nature of groundnut gives it immense economic potential. Apart from being used for cooking, it can also be used as animal feed and even biofuels. Groundnuts can be found in diverse ecological zones such as Kano, Katsina, and Jigawa. Revenue in the Nuts market, groundnut inclusive, according to Statista amounts to US$1.60bn in 2024. The market is expected to grow annually by 9.62%.

Palm Oil

Nigeria stands as one of the world’s top palm oil producers. The cultivation of oil palm spans numerous states, such as Enugu, Edo, Delta, Rivers, Osun, Cross River, and Akwa Ibom. The tropical climate and abundant rainfall in these areas establish ideal conditions for oil palm cultivation. The International Institute for Sustainable Development revealed that the palm oil sector grew to over $50 billion in 2021 and is projected to expand to $65 billion by 2027.

Sesame

Also referred to as beniseed, sesame is a highly valued cash crop grown massively in the northern part of the country. Sesame seeds stand out as a promising export commodity within the nation. Sesame oil is widely used in cooking, while the seeds are utilized in baking, confectionery, and as a seasoning. In the first quarter of 2023, Nigeria exported sesame seeds amounting to N67.66 billion, constituting 24.20 percent of the nation’s total agricultural exports during that period.

Rice

Rice is a fundamental dietary staple and the most widely consumed food in the country, serving as a primary source of carbohydrates in Nigeria. Key rice-producing states include Ogun, Ebonyi, Ekiti, Kaduna, Kano, Niger, Benue, Taraba, and Borno. According to Statista, the revenue in the rice market in 2024 is US$4.68 billion, with an anticipated annual growth rate of 14.24%.

Cotton

The cultivation of cotton is mostly concentrated in the northern states of the country such as Kano, Kaduna, and Katsina. Cotton is a versatile crop with various applications, including textile production, oil extraction, and livestock feed. The highly favourable Afro-climatic conditions Nigeria possesses make it favourable for cotton farming. According to the United Nations COMTRADE database on international trade, Nigeria’s cotton exports totalled US$18.16 million in 2022.

Rubber

The southern part of Nigeria, particularly in states like Edo, Delta, and Rivers, serves as the primary hub for rubber cultivation. The abundant rainfall and humid conditions in these regions provide an ideal environment for rubber tree plantations. Nigeria’s rubber industry plays a crucial role in supplying raw materials to the local and international rubber processing sector, which produces a range of products such as tyres, footwear, and other industrial goods. Nigeria shipped Rubber worth $81.5 million, ranking as the 18th largest global exporter of the commodity. 

Yam

Yam is a starchy tuber that is widely cultivated for its edible and nutritious qualities. It is an important food staple in many countries, particularly in Africa, the Caribbean, and parts of Asia. In Nigeria, its primary cultivation hubs include Benue, although other states such as Cross River, Adamawa, Delta, Ekiti, Imo, Edo, Kaduna, Ogun, Kwara, Ondo, Osun, and Plateau.

Soybeans

Soybeans are an important cash crop in Nigeria valued for their high protein content and versatility in food production. They are cultivated mainly in states such as Benue, Kaduna, Niger, and Kebbi. Soybeans play a significant role in food security, animal feed production, and industrial applications. In 2021, Nigeria’s soybean exports totaled $2.58 million, positioning the country as the 60th largest global exporter of soybeans. During that period, soybeans ranked as the 105th most exported product in Nigeria.

Tobacco

This is a cash crop cultivated primarily for the production of cigarettes and other tobacco products. It is grown in various states across the country, including Oyo, Ogun, Kano, and Kaduna. According to Statista, the projected revenue from Nigeria’s Tobacco Products market is expected to reach $2.0 billion in 2024.

Cassava

Cassava holds significant importance as a root crop in Nigeria, contributing substantially to the income of farmers and processors in the country. The primary cassava-producing states include Imo, Anambra, Kogi, Cross River, Enugu, Ogun, Ondo, Taraba, Benue, Delta, and Edo.  

Despite the government’s minimal attention to invest in harnessing the full potential of these cash crops, they still generate staggering figures for the country. Nigeria has a lot of cash crops that are of essential demand in global markets, and therefore, possess the power to address economic downturns in the country.