Investors bet big on Nigeria’s coffee industry to earn over $2bn by 2025

Onome Amuge

Stakeholders in Nigeria’s coffee industry are brimming with optimism, envisioning the sector’s potential to reach a significant $2 billion in revenue over the next two to three years.

According to Statista, the global coffee market is valued at $88.35 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 4.61 percent between 2023 and 2028. The growing popularity of coffee in emerging markets, combined with increased demand for specialty coffee and product innovation in developed markets, has driven the expansion of the industry.

In recent years, Nigeria’s coffee sector has seen increasing interest from both domestic and foreign investors, who see the potential for growth in the industry. With the right government support and policies, the sector could play a significant role in boosting the economy and creating jobs in the country.

Given its large population, favourable climate, and untapped potential for productivity gains, industry players have raised optimism that Nigeria could potentially emerge as a major coffee exporter and an important player in the global coffee industry.

Larry Segun-Lean, president of the West Africa Specialty Coffee Association (WASCA), expressed a positive vision for the industry’s future at the World Coffee and Tea Expo held recently  in Lagos. He said, “In the next two to three years, we aim to generate $2 billion in coffee revenue by aggregating our cultivation capacity.”

Segun-Lean highlighted the growing interest from international markets, especially Japan, in Nigerian coffee. However, he stressed the need to stimulate local interest in coffee cultivation, as many people still confuse it with cocoa.

Securing land remains a major challenge for the coffee industry, according to the coffee expert, who called on states involved in coffee cultivation to provide adequate land to farmers. He noted that clearing land for farming requires machinery and proper education to boost production.

In his view, stimulating interest in coffee cultivation among Nigerians is critical to expanding the industry and increasing revenue. He stressed the importance of proper information dissemination to educate people about the differences between coffee and cocoa and to dispel misconceptions about coffee.

Segun-Lean said, “Many people confuse coffee with cocoa, and some even consider coffee a byproduct of cocoa. But securing land is a key challenge for the industry. These challenges need to be addressed if the sector is to reach its full potential.”

Despite the challenges, industry leaders are determined to expand their operations and make the most of the growing international demand for Nigerian coffee. They are focused on expanding into new markets and improving their share of the lucrative global coffee market.

The WASCA president also highlighted the Nigerian-Canadian Coffee Exchange Corridor, an initiative to promote coffee trade between Nigeria and Canada and showcase the country’s diversity and quality of coffee to the international market. He believes that the corridor will offer a unique opportunity for coffee enthusiasts in both countries to appreciate the unique flavours, aromas, and cultural richness embodied in every cup of Nigerian coffee.

According to Segun-Lean, the partnership between Nigeria and Canada promises to unlock the rich heritage of Nigerian coffee, with a wide range of premium coffee varieties from across the country offered to Canadian consumers. This, he explained, will help to raise awareness of the unique and high-quality coffee produced in Nigeria and to promote the country as a world-class coffee producer.

Nigeria is one of the 49 members of the International Coffee Organisation (ICO). Though the country isn’t ranked among the top global producers, it is known for its vibrant coffee culture and fertile coffee-growing regions which boasts a wide range of exceptional coffee varieties, including but not limited to, the coveted Robusta, Arabica, and Excelsa beans.

Comfort Aruosa-Osemwegie, founder and chief executive officer, Dealroom Nigeria, a deal pre-screening and showcase platform, which aims to connect investors with viable and credible investment opportunities in Nigeria, noted that there are many opportunities for the youths to invest in the coffee industry as it happens to fall under the agricultural value chain. 

Aruosa-Osemwegie highlighted the potential of the coffee sector to provide employment and generate income for young people in the country. She noted that the industry offers a wide range of opportunities, from farming and processing to exporting and retailing.

The human resources and organisation development leader also stressed the importance of having a sound business model and being investor-ready as crucial factors for success in the coffee sector. She urged entrepreneurs to seek support from organisations like Dealroom Nigeria to improve their chances of securing investment and achieving growth.