COMMODITY TRADING IN NIGERIA

Commodity trading is fast becoming one of the most lucrative investment sectors in Nigeria, driven by strong global demand for agricultural products. Among the most promising are sesame, cocoa, and cashew — three crops that consistently contribute to Nigeria’s non-oil export earnings. With the right strategy, investors can profit across the value chain: from production and aggregation to trading and export.

Sesame: The “Golden Seed” of Opportunity

Nigeria ranks among the top five sesame-producing countries globally, exporting mainly to Japan, China, and Turkey. Sesame is highly valued for its use in edible oil, confectionery, and pharmaceuticals.

On average, one hectare of sesame farmland can yield about 800 kilograms of seeds. At ₦1,500 per kilogram, farmers can gross roughly ₦1.2 million per hectare. Investors who prefer not to farm can trade sesame contracts through AFEX Commodities Exchange or NCX (Nigerian Commodities Exchange), where sesame is listed as a tradable commodity.

Practical examples include Olam Nigeria, which sources and exports sesame to Asian markets, and Starlink Global and Ideal Limited, an agro-export company with a network of sesame farmers in Benue and Taraba States. Similarly, AFEX’s warehouse receipt system allows investors to buy sesame stored in certified warehouses, earning profits as prices appreciate seasonally.

Cocoa: Nigeria’s Brown Gold

Cocoa remains one of Nigeria’s most valuable agricultural exports, with strong markets in Europe and North America. The crop’s steady global demand—fueled by chocolate production—makes it a reliable investment.

A 50kg bag of cocoa beans sells for between ₦150,000 and ₦200,000. Investors can benefit by financing cooperatives, investing in value addition, or trading cocoa futures. Companies such as Stanmark Cocoa Processing Company and Multi-Trex Integrated Foods Plc process cocoa beans into butter and powder for export, yielding higher returns.

Another success story is FTN Cocoa Processors Plc, which operates in Ondo State and supplies semi-finished cocoa products to international confectionery firms. Government initiatives like the National Cocoa Revitalization Programme are also enhancing productivity and export potential, making the sector increasingly attractive to investors.

Cashew: A Fast-Rising Export Star

Nigeria is the second-largest producer of cashew in Africa, exporting mostly raw nuts to Vietnam and India. However, domestic processing offers even greater opportunities. A tonne of raw cashew sells for about ₦1 million, while processed kernels can fetch up to ₦3 million.

Companies such as Valency Agro Nigeria Ltd., RCF Cashew Processing Company, and ACET Processing Nigeria Ltd. are leading examples of firms that have successfully invested in cashew value addition. They source directly from smallholder farmers, process locally, and export to premium markets in Europe and the Middle East.

Conclusion

Investing in sesame, cocoa, and cashew offers Nigerian and international investors sustainable returns and exposure to global commodity markets. Whether through farming, aggregation, or structured trading on exchanges like AFEX and NCX, these commodities provide profitable and scalable opportunities. As Nigeria diversifies beyond oil, these “golden crops” stand out as pillars of agricultural wealth and industrial growth.

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