Nigerian farmers and exporters can tap into the $4billion global coconut market to earn foreign exchange to improve their livelihood as demand continue to rise with key producers struggling to keep up.
Coconuts’ remarkable level of resilience means that they can be grown on a wide variety of soils, although they do require a relatively high amount of rainfall.
It is a cash crop that is grown in 22 of Nigeria’s 36 states, with Lagos State having the largest production area. The crop serves as a raw material for numerous industries such as the pharmaceutical, cosmetics and food and beverage, with limitless domestic and export potentials.
The most sought-after component of the fruit is the coconut water, which is very rich in potassium and other electrolytes, is considered a health drink and recommended for diabetic patients, among others uses.
“It is a great opportunity that farmers can tap into, especially now that the country is in need of dollars,” Mufutau Akinlolu, president, Coconut Growers Association in Badagry, told BusinessDay in a telephone interview.
“The government needs to invest in new trees and fertilisers to increase yield per hectare and also in the value chain. There is very little investment in coconut processing currently,” Akinlolu said.
Akinlolu stated that for the country to increase its production of the coconut crop, the government must address the issue of land acquisition, which he noted is the biggest challenge confronting farmers.
Despite the potential of the crop, the country is yet to fully harness the economic benefits from growing coconut, on account of ageing trees and low quality seeds, say experts.
“Most of the coconut trees in the country are ageing and there is a need for their replacement,” Akinlolu added.
The coconut fruit is also processed into fine vegetable oil that can be used for cooking as well as for cosmetics.
Nigeria produced about 288,615 metric tonnes of coconuts in 2017 and occupies the 18th position on the world coconut production index, according to data obtained from The Food and Agricultural Organisation (FOA).
Coir, which is the fiber from coconut husk, is used in making ropes, rugs, mats, brushes, sacks, caulking for boats and stuffing for fiber mattresses.
The fronds (leaves) are used for brooms, cooking skewers, woven into mats or burnt to ash to yield lime. The husk and shells are a source of charcoal and can be used for fuel.
Celestine Ikuenobe, director of Nigeria Institute for Oil Palm Research (NIFOR) says that coconut “is a crop in which the country should exploit its comparative advantage because it can be grown in 22 states. It grows very well mostly in coastal regions.”
Ikuenobe had told BusinessDay in 2017 that the country would soon have new investments in the cultivation and production of the coconut in Cross River State, adding that the institute had already been contacted by a group of the new investors. He added that the investors had approached the institute to develop hybrid coconut seeds.
He said traders were already exporting the crop on a very small scale, calling on the government to assist in boosting the production of the crop to enable it earn foreign exchange for the country, especially now that the government is focused on diversifying its revenue through agriculture.
According to Ikuenobe, there are now hybrid varieties of coconut that mature and bear fruit in between two and three years.
Currently, the price of a metric ton of the crop has increased by 9 percent from $657.3percent in July to $719.3percent in August, according to data obtained from Index Mundi.
Josephine Okojie
