Nigeria cocoa sector faces $2bn annual loss and corporate debt

Nigeria is facing significant economic challenges within its cocoa sector, characterized by both industrial underutilization and corporate financial strain. The Federal Government reported that the country loses approximately $2 billion annually due to inadequate cocoa processing capacity. Currently, only about 30 percent of Nigeria’s installed processing capacity is being utilized, as the nation continues to export much of its raw cocoa beans rather than processed goods like cocoa butter, powder, and chocolate.

In the private sector, FTN Cocoa Processors Plc is struggling with a massive debt burden despite a 310 percent surge in revenue. The company’s liabilities reached ₦23.71 billion at the end of the 2025 financial year, with borrowings accounting for nearly 98 percent of its total liabilities. This debt, coupled with high production costs and low capacity utilization, resulted in a gross loss of ₦685.92 million, even as revenue rose to ₦5.65 billion.