Firm pushes to revive Nigeria’s cocoa industry with 45,000mtt

At Premium Cocoa Products Ile-Oluji Limited, Johnvents is working to restore the fortunes of one of Nigeria’s oldest cocoa-processing plants, expand local processing capacity and strengthen the country’s position in the global cocoa value chain.

For Nigeria, cocoa is more than an agricultural commodity. It is a product that once powered regional prosperity, supported farmers and helped shape the economic fortunes of the old Western Region. Today, the crop still holds considerable potential to generate export earnings, create jobs and stimulate industrial development. Yet, much of that promise depends on the country’s ability to move beyond exporting raw beans to processing cocoa into higher-value products.

At Ile-Oluji in Ondo State, Johnvents is pursuing that ambition through Premium Cocoa Products Ile-Oluji Limited, a factory described by its managing director, Sunday Bamikole, as the only surviving first-generation cocoa-processing factory in Nigeria.

Commissioned in 1980, the facility represents both a legacy of Nigeria’s industrial past and an opportunity to rebuild the country’s cocoa-processing capacity. Since Johnvents took over the plant in February 2023, the company has embarked on a recovery and expansion programme designed to restore production, increase capacity and contribute to the local economy.

Bamikole’s account of the factory’s revival reflects a broader question facing Nigeria’s agricultural sector: how can the country turn its abundant agricultural resources into industrial wealth?

Reclaiming cocoa’s lost industrial promise

Cocoa was once a major source of income for the Western Region in the 1960s. Its economic importance extended beyond the farms, supporting trading networks, livelihoods and the development of related industries.

However, Nigeria’s cocoa-processing sector has experienced a decline. Bamikole cited Cocoa Industries Limited in Ikeja, which he described as the first established cocoa-processing factory, and a processing facility established by Oyo State in Ede. Both, he said, had become moribund.

Against this background, the survival of the Ile-Oluji plant carries particular significance.

When Johnvents took over the facility in February 2023, its installed capacity of 30,000 metric tonnes per annum had been severely eroded. Johnvents Group is an integrated agribusiness firm and a food processing giant with no fewer than 12 subsidiaries. According to Bamikole, the factory was processing fewer than 2,000 metric tonnes annually, far below its potential.

The task was therefore not simply to operate an existing factory but to rebuild its capacity, stabilise production and restore its place in the cocoa value chain.

The company’s initial strategy focused on stabilising operations before moving towards full utilisation of its 30,000-metric-tonne installed capacity. A longer-term expansion programme would subsequently increase capacity to 45,000 metric tonnes annually.

The early response, Bamikole said, was encouraging.

“Within six months, we had 300 per cent of capacity request,” he said, describing the demand that followed the company’s takeover.

The response suggested a market opportunity for locally processed cocoa products, although sustained growth will depend on the factory’s ability to meet demand consistently and secure reliable supplies of quality beans. Along the value chain, no fewer than 40,000 farmers have been empowered, the firm disclosed.

From the farm to finished cocoa products

The factory’s contribution to industrial development lies in its ability to transform cocoa beans into products that serve manufacturers at different stages of the chocolate and food-processing industries.

Its product range includes cocoa beans, cocoa nibs, cocoa liquor, cocoa butter, cocoa cake and cocoa powder.

Explaining the production process, Bamikole said the journey begins with farmers harvesting mature cocoa pods. The pods are cracked open, and the beans are fermented for five to seven days before being dried.

The dried beans are then transported to the factory as raw materials. Because the beans may contain dust, stones, pieces of wood and other foreign materials from harvesting and post-harvest handling, they must undergo cleaning before processing.

The factory removes impurities and stones before reducing the moisture content of the beans. While cocoa arriving from farms is expected to contain about eight per cent moisture, Bamikole explained that the factory aims to reduce this to four per cent to improve processability.

This is achieved through a rapid process known as micronising.

The beans then pass through winnowing, during which they are broken and separated from their shells. The edible inner portions, known as cotyledons, are broken into smaller pieces called cocoa nibs.

The nibs undergo treatment to reduce harmful microorganisms to acceptable levels before roasting. Roasting is also important for developing the characteristic chocolate flavour, colour and aroma, he explained.

After roasting, the nibs are ground in two stages to produce a smooth paste known as cocoa liquor. This liquor is subsequently subjected to mechanical pressing, which separates the cocoa butter from the remaining cocoa solids.

The butter is collected as the filtered product, while the solid residue becomes cocoa cake. The cake is then ground into cocoa powder.

Through these stages, the factory converts an agricultural raw material into several industrial ingredients, creating opportunities for value addition before the products reach domestic or international markets.

Export earnings and local economic activity

For Johnvents, expanding cocoa processing is also an economic development strategy.

Bamikole said the company’s increased production had contributed to foreign-exchange inflows through exports, while improved factory operations had created additional employment opportunities.

The benefits, he explained, extend beyond the factory gates. Workers living in Ile-Oluji and surrounding communities spend money on transportation, food and other locally supplied goods and services. Greater industrial activity can therefore support businesses and livelihoods across the surrounding economy.

One of the factory’s important products is cocoa butter, with Bamikole stating that 99.99 per cent of its cocoa butter is exported. The company’s products also serve manufacturers, including Dune Chocolate, according to the information provided.

The export of processed cocoa products demonstrates the potential for Nigeria to earn revenue not only from raw beans but also from products that have undergone additional industrial processing.

However, the long-term impact will depend on maintaining production, securing adequate cocoa supplies, meeting customer requirements and expanding the market for Nigerian-made cocoa ingredients.

Bamikole also noted that each cocoa variety has its own distinctive flavour, underscoring the importance of bean quality and characteristics in producing cocoa ingredients for different uses.

Johnvents’ expansion programme is built around increasing production capacity in stages.

The immediate objective was to stabilise operations and recover the factory’s performance. The medium-term target was to restore production to the installed capacity of 30,000 metric tonnes annually, while the longer-term plan was to expand to 45,000 metric tonnes.

According to Bamikole, intervention from the Bank of Industry (BOI) in 2024 provided capital-expenditure support that helped shorten the journey towards these targets.

The company expects to reach 30,000 metric tonnes of annual capacity by the fourth quarter of 2026, followed by 45,000 metric tonnes by December 2027.

These are company targets rather than completed milestones. Their achievement will depend on the execution of the expansion programme, equipment and operational readiness, financing, raw-material availability and market demand.

Bamikole’s account also points to a major challenge for Nigeria’s cocoa industry: processing infrastructure must be supported by an efficient supply chain. He cited a figure of just 1,500 hectares of farm area in the context of the company’s operations, although the precise relationship between that figure and its wider sourcing network was not specified.

For a plant seeking to process tens of thousands of metric tonnes annually, reliable access to quality cocoa beans will be essential. Strengthening links with farmers, improving post-harvest handling and ensuring consistent supply will therefore be important to sustaining the factory’s growth.

Making cocoa work for Nigeria

The story of Premium Cocoa Products Ile-Oluji Limited is part of a larger conversation about Nigeria’s economic future and the role of agro-industrialisation in national development.

Restoring a factory that had fallen far below its installed capacity is a significant operational undertaking. Expanding it further could deepen local value addition, increase export earnings, support employment and stimulate economic activity in Ondo State.

John Alamu, founder of Johnvents Group, recounted how challenges faced by farmers inspired his journey from commodity trading into cocoa processing, as the Nigerian agribusiness company expands its operations and diversifies into other products.

Speaking about the group’s growth, Alamu said his experience as a trader exposed him to two major problems confronting farmers: limited access to finance and difficulty securing competitive prices for their produce.

“I realised farmers have two challenges. One, they could not access finance. Two, when they produced, they could not sell at good prices,” he said.

According to him, the experience informed his decision to explore financial services and commodity trading as ways of addressing these challenges. While financial services businesses within Capital Stage Holding support the group’s wider interests, Johnvents developed its agribusiness operations by buying produce from farmers and selling to off-takers.

Alamu said the business later moved beyond trading into processing, following an opportunity to acquire a moribund cocoa factory in Ondo State.

Recalling the acquisition, he said he initially lacked both the money and manufacturing experience required to take on the project.

“Number one, I don’t have the money. Number two, I’ve never done manufacturing in my life,” he said.

Despite the challenges, he pursued the acquisition, which marked a turning point in the company’s development.

He said its location in Ondo State was strategic because the state is Nigeria’s largest cocoa-producing state, making proximity to raw materials important for processing operations.

From that initial investment, Johnvents expanded its footprint, including the acquisition of the Ile-Oluji cocoa factory. Alamu said the group now operates 10 factories in Ondo State alone and has a cocoa-processing capacity of 48,000 metric tonnes, which he described as the largest in Nigeria.

However, Alamu noted that Johnvents had diversified beyond cocoa into soya beans, soya oil, animal feed, seasoning and chocolate, as well as consumer products such as its three-in-one beverage.

He said the group now has more than 4,000 employees, operates in 19 countries and has over 60 products, with exports remaining a major part of its business.

Dr. Tomi Omotosho, MD Noble-Eagle Industries Limited, in Owo highlighted Johnvents Group’s focus on food quality, consumer safety and locally sourced ingredients as the company expands its presence in Nigeria’s food processing industry.

Speaking on the company’s operations and product development, Omotosho said Johnvents was seeking to make quality food products more accessible by reducing the intermediaries between farmers and consumers.

She explained that the company’s approach was informed by concerns about the ingredients used in food production and the importance of maintaining standards across its product range.

“We are ensuring that there is access to that quality food without much intermediaries between the farmers and your home,” she said.

Omotosho stressed that the company’s commitment to quality was not intended to be sacrificed for profitability, adding that its vision included delivering products that met consumers’ expectations.

She also highlighted the importance of quality control in the manufacturing process, particularly in product packaging. According to her, the company conducts regular checks to ensure that products meet the required standards and contain the correct quantities.