Nigeria’s processed food sector has emerged as a major economic growth driver, with export values surging dramatically as the country shifts toward value-added production strategies.
According to the National Bureau Statistics, the “Prepared foodstuffs; beverages, spirits and vinegar; tobacco” category experienced remarkable growth, climbing from N472.82 billion in Q1 2024 to N1.43 trillion in Q1 2025. This significant increase elevated the sector’s share of total exports from 2.47 percent to 6.94 percent, demonstrating Nigeria’s evolving export diversification strategy.
The transformation reflects substantial investment in processing infrastructure across key agricultural commodities. Cocoa derivatives have played a dominant role, with the crop accounting for approximately 41 percent of total non-oil export value in the first half of 2025. This indicates a strategic pivot from raw commodity exports to finished products such as cocoa butter, liquor, and cake.
Investment momentum continues building across the sector. Johnvents, a prominent cocoa processor in Ondo State, recently secured a $40.5 million facility to expand production capacity from 12,000 to 30,000 metric tonnes annually. The timing proves advantageous as global cocoa prices have soared due to supply constraints, making value-added processing increasingly profitable.
“The significant improvements in processed food product quality represent a growing focus on value addition among Nigerian businesses,” explained Dr. Jide Adediji, Academic Director for the Agribusiness Management Programme at Lagos Business School. “We’re witnessing transformation of agricultural raw materials into higher-value products.”
Despite export growth, Nigeria continues facing substantial food trade deficits. The country imported N1.67 trillion worth of food and beverages in Q1 2025, representing a five percent increase from the previous year. This highlights ongoing challenges for policymakers balancing export promotion with domestic supply chain improvements.
Industry experts identify several factors sustaining export momentum, including improved foreign exchange access, enhanced international standards compliance, and ongoing port infrastructure upgrades. However, challenges persist in formalizing export channels, as many small and medium enterprises resort to informal trade to avoid complex certification processes.
The processed food export surge demonstrates Nigeria’s potential for agricultural value addition while highlighting the need for continued investment in processing infrastructure and trade facilitation measures.
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