Against a backdrop of rising coffee prices, soaring business costs, and higher interest rates, market competition has intensified. Roasters are pushed to find new points of differentiation to cut through the noise and retain their customers.
Sourcing from new, exciting origins has always been a unique selling point in specialty coffee, but it’s arguably never been more critical than now. As consumers seek distinctive flavour experiences, roasters need to broaden their horizons and switch up their buying strategies to stand out.
Africa is home to several major producing countries, such as Ethiopia and Uganda, which both dominate the continent’s coffee market. But it also includes lesser-known coffee origins, like Nigeria, that offer roasters access to untapped market potential.
Once a powerhouse-producing country, Nigeria’s coffee sector has faced a number of challenges over the last few decades, causing production volumes to drop significantly. However, with interest in high-quality Nigerian-grown coffee rising in recent years, the government and key stakeholders are investing in and hoping to revitalise the country’s coffee market – but challenges persist.
To learn more about the potential of Nigerian coffee, I spoke to Abdulrahman Hayel Sayeed, the managing director and co-founder of Green Bean, a coffee sourcing and processing company specialising in the Nigerian market.
You may also like our article on how coffee consumption is changing in Nigeria.
A brief history of Nigerian coffee production
Coffee was first brought to Nigeria, a West African country, by British colonists in 1843. Initially, cultivation was small-scale and primarily restricted to Lagos and the surrounding area.
Throughout the early 20th century, production volumes scaled, particularly in the states of Lagos, Ogun, and Ondo. Nigerian coffee quickly gained global recognition for its exceptional quality and became one of the country’s major cash crops. By the 1950s, it had become one of Africa’s most prominent coffee growers and exporters.
Its position as a leading producing country, however, was short-lived. By the 1970s, production volumes dropped significantly, owing to a number of complex factors like falling global coffee prices, inefficient farm management, and the country’s booming oil industry.
In the decades following, the Nigerian government made multiple attempts to revive the country’s coffee sector. Still, inadequate infrastructure, insufficient investment, and competition from alternative crops continued to pose major challenges.
Reinvestment in the country’s coffee sector
It was during the 2010s, however, that efforts to reinvigorate production led to some success. To cater to the growing global specialty coffee market, a small number of Nigerian producers started to grow higher-quality coffee.
“Currently, there is an almost non-existent market for Nigerian specialty coffee,” says Abdulrahman Hayel Sayeed, the managing director and co-founder of Green Bean. The company exclusively sources, processes, and exports Nigerian coffee, offering international roasters access to this emerging specialty coffee origin.
“While the country has not yet reached its previous levels of production, estimated at 400,000 tonnes in the 1960s and now at a current low of 100,000 tonnes, there is a steadily growing demand for Nigerian specialty coffee,” he adds. “As a result, several Nigerian producers are gaining global recognition for their unique lots, and efforts to improve processing and quality are becoming more recognised.”
Today, robusta accounts for up to 94% of Nigerian coffee exports. Robusta is grown across 14 states of Nigeria, including Oyo, Ogun, Ondo, Ekiti, Kwara, Edo, Delta, Abia, Cross River, Akwa Ibom, Taraba, Bauchi, and Jos. Arabica accounts for only 4% of the production and grows in just two states: Cross River and Taraba. The remaining 2% is liberica, a species of coffee that grows wild in tropical areas of West Africa.
“Nigeria’s annual coffee exports amount to roughly 10,000 tonnes, but this is a long way from the true potential of the country,” says Abdulrahman, who is also the founder of Mokha Not Mocha, a sourcing, processing and exporting operation, which supports Yemeni farmers to gain better market access.
The potential to “rediscover” a hidden gem origin
Many roasters are continuously looking for differentiated origins to stand out in an increasingly competitive market. According to a recent Perfect Daily Grind LinkedIn poll, 56% of roasters said that sourcing from new and diverse origins is one of their current priorities.
“The potential to position and market Nigerian coffee as specialty coffee is substantial, similar to the achievements in Ethiopia and Rwanda,” Abdulrahman says.
In today’s specialty coffee market, having a clear differentiator is essential for roasters looking to remain relevant and drive consumer demand. But given that market access to emerging origins like Nigeria is restricted, working with a sourcing and processing company that partners directly with local farmers, like Green Bean, is crucial.
“Like many African-producing nations, small-scale farming domimates Nigeria’s coffee industry,” Abdulrahman explains. “There are quality control challenges, such as a lack of knowledge of harvesting and processing best practices, that often affect the marketability of their coffee. Inadequate logistics systems and infrastructure also present problems.”
The majority of farms are remote, only accessible by poorly maintained roads, making the transportation of cherries and green coffee complicated and tricky. On-farm, meanwhile, ageing and unkempt coffee plants make it difficult to improve yields and quality.
“Green Bean is working to help overcome these challenges through its direct relationships with Nigerian coffee producers and establishing stringent quality control protocols,” Abdulrahman says. “We aim to leverage our experience in Yemen to set a foundation and a benchmark to produce the highest quality Nigerian coffee possible.
“We’re building good working relationships with producers to understand more about their individual needs, providing best practices training for harvest and post-harvest activities, and organising workshops so that farmers can share their struggles and offer solutions.”
Opportunities for Nigerian coffee are growing
Alongside the growing international interest in Nigerian coffee, the domestic market for high-quality coffee is rising, facilitated by rapid urbanisation and an expanding middle class with higher disposable income.
It’s estimated that Nigerian consumers drank around 1,000 tonnes of coffee in 2020, which, while a low figure, does represent a 23% increase from the previous year. Although instant coffee is still the most popular option, there is a small but growing coffee shop culture in major cities like Lagos, Abuja, and Port Harcourt. The country also hosted its first-ever national Barista Championship in 2021 – a clear sign of its potential as a specialty coffee consumer.
“There is an emerging movement towards specialty coffee in the country, as consumers actively pursue unique and exclusive flavour experiences. As a result, there has been an increase in the number of specialised coffee shops and artisanal roasters,” Abdulrahman tells me.
Despite being a producing country, Nigeria also imports a significant amount of coffee to meet domestic demand. But its capacity to become a major exporter of high-quality coffee still remains untapped.
“Through investments in quality improvement and sustainable farming practices, Nigerian producers can enhance their competitive edge in the global market,” he adds. The country’s geographical location is ideal for exporting coffee on a global scale, while its diverse climates are highly conducive to growing high-quality coffee.
The future looks promising
The Nigerian government, determined to diversify its economy and reduce its reliance on oil, has launched several support programmes specifically designed to boost coffee exports, including financial assistance and training initiatives in partnership with the Nigerian Export Promotion Council.
There is also potential for implementing cutting-edge technologies and advanced processing techniques, reducing production costs and improving yields and quality – thereby increasing the annual value of Nigerian coffee to potentially US $2 billion.
With the growing demand for specialty coffee and unique flavour experiences, producing single origin micro lots could be the unique selling point that Nigerian producers need to discern themselves from other African coffee-growing countries. Naturally, this would require significant ongoing support from the government and key stakeholders.
But key challenges persist
Although the potential to grow Nigeria’s coffee production and export infrastructure is vast, several interconnected, complex factors present barriers to achieving success.
Today, coffee accounts for less than 0.01% of Nigeria’s total agricultural exports. In 2022, the country’s coffee exports totalled US $59,000, with France, Egypt, and Belgium as the leading importers.
Opportunities to increase exports and, therefore, revenue would have an immense impact on the country’s smallholders, who often struggle with market access.
“Coffee growers face challenges in transporting their beans to processing facilities and ports because of inadequate transportation infrastructure like poorly maintained roads and ineffective logistics,” Abdulrahman explains. “This can lead to delays, increased expenses, and potential damage to coffee beans.”
Despite joining the International Coffee Agreement in late 2021, Nigeria does not have a centralised coffee exchange or a formal system for trading coffee. Furthermore, the small number of buyers of Nigerian coffee (primarily large companies) are often unable to commit to buying one farm’s entire harvest, creating further instability. This has been compounded by a lack of ongoing government support for the coffee sector.
“The lack of quality control methods and certification criteria also affects global market entry,” he adds. “The capacity to process coffee beans for export is limited because producers don’t have access to the proper facilities and machinery.
“Nigerian coffee growers also struggle to identify and reach potential clients and effectively market their coffee due to restricted access to market information and a lack of knowledge about global coffee trends.”
Revitalising Nigeria’s coffee sector will require collective efforts
Change is necessary if the Nigerian coffee sector is to grow and thrive in the future. Government intervention remains essential, especially when it comes to establishing more formalised trade networks and disseminating information and resources for producers to invest in their farms.
“Collaborative endeavours from both public and private sectors aimed at enhancing production and quality and advocating for Nigerian coffee in the global market are helping to revitalise the coffee industry,” Abdulrahman says. “Efforts are being made to assist smallholders, many of whom don’t use chemicals on their farms, to enhance their access to financial resources, agricultural methods, and infrastructure.”
Coffee production in Nigeria has been limited in scale for many years, but it’s set to slowly grow with support from the government and global sourcing partners like Green Bean, helping connect the country’s producers with international buyers.
“We’re building a foundation needed to scale the accessibility and reputation of Nigeria as an origin. Local farmers are aiming to erect a minimum of 100 raised beds for drying, and the results of the natural and anaerobic fermentation processing were highly promising, with Brix level readings as high as 24 for some of the cherries,” Abdulrahman tells me.
“Our producers are also partnering with the National Coffee and Tea Association of Nigeria (NACOFTAN), a non-government organisation that brings together stakeholders across the country’s coffee and tea supply chains,” he adds.
Although it will undoubtedly take time, as more specialty coffee roasters add Nigerian lots to their offerings, the country’s potential to make its mark on the industry only increases. With growing interest from global consumers, the government and key stakeholders are also encouraged to invest in production.
In a country that is pushing to diversify its income beyond oil, coffee production could be the economic activity that Nigeria needs to transform. With more awareness of its potential to grow high-quality lots and increased support for producers to employ better farming practices, Nigeria could emerge as a new “hidden gem” origin.
Challenges persist across the board, which makes growing interest in this origin all the more critical. There’s a bright future for the Nigerian coffee sector, but key stakeholders need to offer support for sustainable growth.
Enjoyed this? Then read our article exploring the Nigerian coffee sector.
Perfect Daily Grind
Photo credits: Green Bean
Please note: Green Bean is a sponsor of Perfect Daily Grind.
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