The Former Kings of Nigeria's Economy: Cocoa and the Groundnut Pyramids

by
Ogundeko Toluwanimi Alexis
 and
October 27, 2024

From the mid-60s to the 1970s something happened that changed the history of Nigeria forever-The infamous "Oil Boom" of the 1970s. Crude oil exploration in Nigeria brought enormous economic prosperity. There was a remarkable increase in the foreign exchange earnings during the oil boom era in Nigeria. However, poor management, widespread corruption and disorganization in the oil industry and government resulted in the misappropriation of this resource and subsequently, the fall of the economy.

Agriculture was the main source of Nigeria’s economy before the discovery of crude oil. From 1960 to 1969, the sector accounted for an average of over 50% of Gross domestic product(GDP) and generated 64.5% of export earnings. From 1970 to late 2000s, the sector’s contribution to GDP and export earnings steadily declined, because Nigeria's focus shifted to petroleum exploration.

Cocoa

Nigeria's economic history can be traced back to the time when cocoa, not oil, was the country's primary source of wealth and economic stability.The cultivation and export of cocoa began in Nigeria in the late 19th century, marking a pivotal moment in the country's agricultural and economic history. This era saw the emergence of cocoa as a significant cash crop, which helped to reinforce the country's economy and establish its reputation as an agricultural powerhouse.

However, as the government and international investors shifted their attention and resources towards the more lucrative oil sector, the cocoa industry was neglected and its production and export began to decline. This shift led to an extreme decline in the agricultural sector, including cocoa production as a result of neglect and degradation.

Cocoa Tree

The Evolution of Cocoa

The cocoa industry in Nigeria experienced several stages of evolution throughout its history, shaped by various factors including political shifts, economic changes, and technological advancements.

Early cocoa farms were established in Bonny and Calabar, but the area proved unsuitable for cultivation. Main varieties of cocoa planted included Amelonado and a heterogeneous strain from Trinidad. Cocoa production peaked in the 1950s, accounting for nearly half of Nigeria’s agricultural exports. Nigeria’s share of world cocoa output unfortunately dropped due to the discovery of oil and Cocoa production decreased, falling from 170,000 tons in the 1950s to 389,272 tons annually between 2000 and 2010.

Cocoa House

Cocoa House, standing at an astonishing height of 105 metres, was completed in July 1964 and commissioned in July 1965. It was the first skyscraper in West Africa and was, from 1965 to 1979, the tallest building in Nigeria. The initial name given to the 26-storey building was 'Ile Awon Agbe', translating from Yoruba to 'House of Farmers' in English. The name was later changed to Cocoa House because it was built with proceeds from cocoa rexportation and also because there was a cocoa tree planted In front of the building just beside a water fountain.The building, belonging to the Odua Investment Company Limited, became a source of joy and pride for the residents of Ibadan, Oyo state, where it is locatedand Nigeria as a whole.

Cocoa House Ibadan, Oyo State Nigeria.

The Groundnut Pyramids

Groundnut pyramids were pyramid-like structures made from groundnut sacks. The pyramids were built in northern Nigerian cities such as Kano, where groundnut production was a key part of the economy. They were viewed as both a tourist attraction and a symbol of wealth. These grand structures stood as a testament to Nigeria's rich agricultural history, serving as a reminder of its capacity for economic growth and innovation in the agricultural sector.However, as production in Nigeria shifted from agriculture to oil, the groundnut pyramids disappeared.

History of The Groundnut Pyramids

Groundnut pyramids were the invention of Alhassan Dantata, a prominent nut trader. Dantata came to Kano in the year 1919 and within five years was one of the most successful businessmen, supplying the Royal Niger Company (RNC) with most of their groundnuts. Dantata’s company kept their groundnuts at a facility in Kofar Nassarawa, and they stacked the bags in the shape of a pyramid before they were shipped. One groundnut pyramid could be made from as much as 15,000 full groundnut bags. Groundnut pyramids were built all across northern Nigeria, in cities like Kofar Mazugal, Brigade, Bebeji, Malam Madori and Dawakin Kudu. The pyramids became synonymous with Nigeria’s agricultural wealth; a postage stamp even featured a groundnut pyramid. However, as groundnut production declined in the 1970s and 80s the groundnut pyramids disappeared and were replaced with buildings.

Apart from the shift to crude oil, factors like disease and pest outbreaks, poor infrastructure and inconsistent policy management combined to lead to a significant decline in Nigeria’s groundnut industry, resulting in the disappearance of the iconic groundnut pyramids and a shift away from groundnut production as a major economic activity in the country.

Groundnut Pyramids in Kano State, Nigeria.

The Modern Day

The groundnut pyramids of Nigeria are more than just iconic structures; they serve as a powerful symbol of the country's agricultural history and potential for agricultural development. By learning about and preserving these landmarks, we can gain valuable insights into Nigeria's rich agricultural past, and better understand the importance of agriculture in the country's present and future.

Despite different challenges, Nigeria remains a major player of Cocoa Exportation on the world stage. Today, it stands alongside neighbouring nations like Ivory Coast and Ghana, collectively accounting for an impressive 70% of the world’s total cocoa output.

Today, efforts are being made to preserve Nigeria’s agricultural heritage. The Nigerian Government is working to promote agricultural development in the country across various industries. Efforts to revive the sector include promoting modern agricultural techniques, increasing investment, and establishing innovative trends and practices in the agricultural industry.

References

  1. Wikipedia.com
  2. THE EVOLUTION OF NIGERIA’S COCOA INDUSTRY https://www.linkedin.com/pulse/evolution-nigerias-cocoa-industry-johnvents-oeq4f
  3. https://gombella.com/discovering-nigerias-groundnut-pyramids-a-historic-icon-of-nigerias-agricultural-heritage/

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