FG Unveils Coffee Revival Plan To Rebuild Export Value Chain

By Jennete Ugo Anya

The federal government, working with farmers, state governments, research institutions, exporters and private investors, has launched a 10-year Nigeria Coffee Revival Initiative (NCRI) to restore the country’s declining coffee industry. Unveiled at the Cocoa Research Institute of Nigeria (CRIN) in Ibadan, Oyo State, the initiative covers 14 coffee-producing states and seeks to rebuild production, processing, marketing and export capacity through policy reforms, improved seedlings, farmer support, value addition and private-sector investment. The programme is positioned as part of Nigeria’s broader economic diversification and non-oil export strategy.

DECISION HIGHLIGHT

The initiative seeks to transform coffee from a marginal agricultural commodity into an integrated export-oriented value chain by introducing a national policy framework, expanding domestic processing, strengthening farmer productivity and reducing dependence on imported coffee inputs.

DECISION MEMO

The coffee revival plan represents more than an agricultural intervention. It is effectively an import-substitution, export-development and rural industrialisation strategy.

Despite possessing suitable agro-climatic conditions and a history of commercial coffee production, Nigeria has remained largely absent from the global coffee economy. Stakeholders attribute this decline to ageing plantations, weak extension services, limited financing, fragmented markets and the absence of a dedicated national coffee policy.

Representing the Honourable Minister of Agriculture and Food Security, Senator Abubakar Kyari, Engr. Adetunji, Oyo State Coordinator of the Federal Ministry of Agriculture and Food Security (FMAFS), framed the initiative as a strategic economic intervention.

According to Kyari, “Revitalising Nigeria’s coffee industry is a strategic imperative for sustainable economic growth, export development and climate resilience.”

The emphasis on local roasting, processing and branding signals a shift from commodity exports towards value retention within the domestic economy.

The initiative also highlights a structural contradiction within Nigeria’s food and beverage industry. While domestic processors continue to import green coffee for manufacturing, local production remains commercially underdeveloped. This disconnect has created a persistent negative coffee trade balance and limited participation by Nigerian farmers in a rapidly expanding global market.

Comrade Adeola Adegoke, Global President of the Cocoa and Coffee Farmers Alliance Association of Africa (CCFAA) and National Coordinator of NCRI, described the challenge as institutional rather than agronomic.

“Nigeria’s coffee farmers have faced aged tree stock, absent extension services, volatile pricing, and lack of structured market access,” Adegoke said.

His observation points to a broader governance issue. Unlike major coffee-producing countries, Nigeria lacks a dedicated sector policy, coordinated investment incentives and structured market development mechanisms.

The involvement of CRIN, the Nigerian Export Promotion Council (NEPC), the International Institute of Tropical Agriculture (IITA) and state governments suggests an attempt to build a complete ecosystem rather than pursue isolated production targets.

The strategy’s long-term success will likely depend less on increasing acreage and more on establishing efficient value chains, processing infrastructure, traceability systems and export competitiveness.

DATA BOX

• Duration of roadmap:
  • 10 years
• Participating states:
  • 14
• Coffee-producing states involved:
  • Ondo, Cross River, Plateau, Ekiti, Oyo, Ogun, Osun, Edo, Abia, Imo, Kogi, Kwara, Taraba and Delta
• Nigeria coffee imports (2024):
  • $3.48 million
• Annual domestic coffee export value:
  • Less than $200,000
• Key intervention areas:
  • Farm rehabilitation
  • Improved seedlings
  • Extension services
  • Traceability systems
  • Processing infrastructure
  • Export expansion
  • Policy development
• Key institutions involved:
  • FMAFS
  • CRIN
  • NEPC
  • IITA
  • National Coffee and Tea Association of Nigeria
  • NCRI

WHO WINS / WHO LOSES

Who Wins

• Coffee farmers.
• Rural communities in coffee-producing states.
• Agro-processors and beverage manufacturers.
• Exporters and logistics operators.
• Agricultural technology providers.
• Research institutions.
• State governments seeking non-oil revenue.

Who Loses

• Imported coffee suppliers if domestic substitution succeeds.
• Informal middlemen benefiting from fragmented markets.
• Processors dependent on foreign sourcing.
• Regions unable to modernise production systems.

POLICY SIGNALS

The initiative signals renewed federal interest in commodity-specific industrial policies.

It also reflects broader policy priorities around:

• Non-oil export growth.
• Import substitution.
• Agricultural value addition.
• Rural industrialisation.
• Climate-resilient agriculture.
• Farmer inclusion in global value chains.

The planned development of a Nigeria Coffee Sector Development Policy would represent the first coordinated institutional framework dedicated to the industry.

INVESTOR SIGNAL

The coffee revival strategy creates potential opportunities across the value chain, including nurseries, farm rehabilitation, processing facilities, warehousing, logistics, certification services, export infrastructure and branded consumer products.

Plateau State’s positioning as a specialty coffee hub and Cross River State’s seedling expansion programme may attract early-stage agribusiness investments.

The strongest investment opportunities are likely to emerge in processing and branding, where value capture significantly exceeds returns from raw bean exports.

RISK RADAR

• Absence of immediate financing mechanisms.
• Weak implementation capacity across states.
• Ageing plantations requiring significant rehabilitation costs.
• Limited farmer access to credit.
• Global coffee price volatility.
• Infrastructure deficits affecting processing and exports.
• Slow policy execution.
• Competition from established African coffee exporters.
• Sustainability of federal and state-level coordination.

The broader economic significance of the initiative lies in its attempt to convert a neglected agricultural commodity into a structured export industry capable of generating jobs, reducing imports, expanding non-oil foreign exchange earnings and strengthening Nigeria’s agricultural value chains.