Nigeria is currently experiencing a sharp rise in coffee prices, with costs nearly doubling in 2024. This spike is largely due to global supply disruptions. Brazil, the world’s largest producer of Arabica coffee, is facing severe drought conditions, which have led to a significant reduction in coffee production. As a result, global coffee futures prices have surged by over 30%, affecting markets worldwide, including Nigeria.
In Nigeria, popular coffee brands such as Nescafe and TopCafe have experienced substantial price increases. For instance, “Nescafe 3 in 1” rose from N28,000 per carton in May to N34,000 by August 2024. This is a considerable jump from its price of N18,000 just last year. Similarly, Nescafe Gold, which sold for N4,800 last year, now costs N8,500. TopCafe 3 in 1, which was priced at N16,000 per carton in 2023, has soared to N26,000 in 2024.
The drought in Brazil has drastically reduced coffee yields. Coffee plants typically require 60 to 90 inches of rainfall each year to thrive. However, many key coffee-growing regions in Brazil received less than 30 inches of rain in 2024, leading to poor harvests. This shortage in supply has caused prices to spike globally.
In Nigeria, inflation has compounded the problem, pushing coffee prices even higher. Import costs have risen, and local businesses are feeling the pinch. Wholesalers and retailers alike have reported price hikes, with many attributing the increase to inflation, rising raw material costs, and higher importation expenses.
Experts recommend improved agricultural practices, including better irrigation systems, to mitigate the effects of climate change on coffee production. Until then, coffee prices in Nigeria are expected to remain high.
