Lifestyle changes have raised coconut demand, forcing Nigeria’s farmers to ramp up investments to tap the commodity’s boom.
Health-conscious Nigerians are taking to coconuts for the management of diabetes, weight loss, high blood pressure, and premature aging.
The global coconut market reached $20.24 billion in 2022 and was estimated to expand at a compound annual growth rate (CAGR) of 8.4 percent from 2023 to 2030, according to a research firm, Grand View Research.
The global coconut production stood at 62.41 million metric tons, Statista said.
Nigeria occupies 18th position on the world coconut production index and produced about 225,526 metric tonnes of coconuts in 2021, according to data from the Food and Agricultural Organisation (FOA).
Lagos, which produces half of the output, has doubled production from 70,000 metric tons to 140,000 tons in two to three decades to meet the demand.
The number of registered coconut processors in Lagos State jumped from 500 to 3,000 in five years to 2024, farmers say.
“Lifestyle and healthy living are fueling a huge demand for coconut products locally and globally,” John-bede Anthonio, chairman and founder of First African Coconut Company Limited, said in an interview.
Anthonio noted that the huge demand has spurred investments across the value chain as farmers are growing more coconuts to meet the rising demand.
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“The production of coconut is rising in the country. Several farmers are now deliberately going into coconut production and making huge investments in its cultivation to meet demand,” he said.
He added that the Lagos State government is also providing support in the form of seedlings and training for new entrants of farmers.
Coconut farmers are now replacing old trees with hybrid seedlings that bear fruits quicker.
Coconut has numerous uses. It serves as a raw material for industries such as pharmaceutical, cosmetics and food and beverage with limitless domestic and export potential.
The most sought-after component of the fruit is coconut water, which is very rich in potassium and other electrolytes. It is considered a health drink and recommended for diabetes patients, among others.
It is grown in 22 of Nigeria’s 36 states, with Lagos having the largest production area.
“The use of coconut oil and other derivatives is growing daily owing to its health benefits,” said Olakulehin Oladapo, general manager at Lagos State Coconut Development Authority (LASCODA).
According to him, this is driving local production of coconut, with more people coming into the cultivation, processing and marketing of the cash crop across the major growing states.
He confirmed that the number of registered coconut processors in Lagos State jumped from 500 almost five years ago to 3,000 currently, noting that the surge is creating more demand for the commodity.
Oladapo stated that despite the production increase, the state is still unable to meet the demand largely covered by imports from neighbouring countries.
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“Increasing demand is driving new investments into the production and processing of coconut in the country,” said Idowu Agbelekale, national financial secretary of the National Coconut Producers, Processors and Marketers Association of Nigeria (NACOPPMAN).
She explained that entrepreneurs are already exporting some of the by-products of the crop on a small scale.
Agbelekale called on the government to assist in boosting the production of the crop to enable it to earn foreign exchange for the country, saying Nigeria is yet to fully harness the economic benefits from growing the crop despite its huge potential.
Also, the Lagos State government is helping farmers to get improved seedlings as it plans to stay ahead in growing the commodity in the country, while creating jobs and boosting supply for processors.
Coir, the fibre from coconut husk, is used in making ropes, rugs, mats, brushes, sacks, caulking for boats and stuffing for fibre mattresses.
The fronds (leaves) are used for brooms, cooking skewers, woven into mats or burnt to ash to yield lime. Husks and shells are a source of charcoal and can be used for fuel.
“I started using coconut oil on my hair in 2022 owing to its health benefits and have not applied any other oil to my hair since then,” Chinwe Chukwu, an accountant with a manufacturing firm in Ikeja, told BusinessDay.
The increased demand is being felt across industries that use it as raw materials, suggesting that the price will continue to surge, experts say.
The prices of coconut have increased by over 100 percent from an average of N250 in January 2024 to an average of N500 for a small size currently, according to BusinessDay’s market survey in Lagos.
