Tracing Nigeria’s Peanut Value Chain: Lessons from the field

This blog post is authored by Innocent Eluagu, GFSI research assistant.

Peanuts (Arachis hypogaea) are an important cash crop that contributes to food security and supports livelihoods in Nigeria as well as other producing countries. Peanuts remain nutritionally vital in Nigeria; providing protein and affordable energy to millions of people and supporting cognitive function (Peanut Institute, 2022).

However, the value chain faces several challenges due to the threat of aflatoxin contamination to food safety, weak certification, infrastructural bottlenecks, and limited access to improved seeds, among others.

Secondly, farmers and traders are resilient but require technical and policy support to overcome quality and export barriers.

Nigeria was once known as a global leader in peanut exports accounting for about 70% her total export earnings at the time (ThriveAgric, 2021). This exploratory project shows that, with the right policy and investments in production systems, consumer safety, infrastructure, and knowledge transfer, Nigeria can reclaim that position and help boost peanut production and export in the West African region and beyond.

Innocent Eluagu, research assistant at the UF/IFAS Global Food Systems Institute (GFSI), set out from July 29th – August 11th as part of MDP practicum to evaluate Nigeria’s peanut value chain, uncovering both the potential and challenges in Nigeria’s peanut production system and steps to improve productivity, quality and export competitiveness.

About the Project

The study focuses on mapping the peanut value chain while identifying gaps that hinder productivity, institutional characteristics, food safety, comparing policy interventions to address production, and export competitiveness. By integrating secondary data, field observations, key informant interviews, and market assessments, the project aims to generate evidence that supports farmers, processors, and exporters in meeting both local and international demands.

The highlight of the study was a visit to two key producing states in Nigeria, Kano and Nasarawa States, to gain firsthand knowledge of the dynamics of the peanut production system.

Map of Nigeria showing states by geopolitical region, with Kano State in the north and Nasarawa State in the central region highlighted and labeled with arrows. — Map of Nigeria showing the 36 states and Federal Capital Territory (FCT), Abuja (uploaded by Ezra Gayawan)

Objectives

The project aims to analyze peanut production value chain in Nigeria, identify barriers to export and recommend pathways for strengthening quality, policy support and trade competitiveness.

The Field Experience

Traveling to Dawanau Market in Kano, the largest grains market in West Africa, was an illuminating experience. The visit revealed that the market has multiple clusters dedicated to peanuts, maize, beans, sesame, cowpea, and soybeans among several other grains. Peanuts are mainly found in central, open yards and adjoining sheds. During my visit, I observed various activities occurring throughout the peanut value chain, such as bulk arrivals from rural producing areas, aggregation by intermediaries, grading and sorting by traders, and bulk packaging for transportation to domestic processors or export agents.

Innocent stands leaning against stacked peanut sacks at Dawanau Market.

A large mound of loose harvested peanuts spread across a tarp at Dawanau Market.

Stacks of filled peanut sacks piled on wooden pallets at Dawanau Market.

Workers load and stack large sacks of peanuts around a truck at Dawanau Market.

Innocent examines a handful of harvested peanuts beside a large pile at Dawanau Market.

Women sort harvested peanuts by hand into black bowls on tarps at Dawanau Market.

At Dawanau market, the traders discussed the decline of the iconic groundnut pyramids in Kano, symbolizing both lost glory and missed opportunities for Nigeria’s global market leadership. The pyramid was a symbol of wealth and tourist attraction in the 1960’s. Several factors have been attributed to the demise of the pyramid, such as shift from agriculture to petroleum following crude oil discovery in the 1970’s, and the outbreak of pests and viruses including rosette disease, which wiped out large parcels of peanut fields (Ajayi, A. 2025).

Though the pyramid has been replaced by a sprawling shopping complex, the site stand as a deep reminder of Nigeria’s once-thriving position in the global groundnut leadership and trade. Some measures to improve production and competitiveness include policy shift, use of improved varieties, infrastructural improvement, good agricultural practices and handling, consistent enforcement of quality and food safety regulations, among several others.

During my visit to a peanut farm in Doma, Nasarawa State, I observed that peanuts are intercropped with maize, cassava, and sorghum. This practice helps provide essential nutrients such as nitrogen, which smallholder farmers often cannot afford to purchase as fertilizer. Additionally, there are many cases of leaf spot virus and rosette disease affecting peanuts, highlighting the need for stronger and more effective planting and extension services.

Innocent crouches between rows of peanut plants at a peanut farm in Doma, Nasarawa.

Three men stand discussing crop conditions in a peanut field in Dawakin Tofa, Kano.

Peanut plants with leaf spots growing in a field at a peanut farm in Doma, Nasarawa.

At Doma Market, a weekly aggregation market that connects rural producers with urban consumers, farmers bring freshly harvested peanuts, either piled into 100 kg jute bags or spread on tarpaulins under the sun. The supply chain system depends on the quantity of peanuts. For smaller volumes, farmers bring them to the market mostly on motorbikes to sell to the traders and agents who are in the market to aggregate. For larger volumes, most often the agents visit the villages to mop up the peanut volume and manage delivery to the processor or exporter. In terms of value addition, local women process peanuts into fried groundnut cake (Kuli-kuli), peanut oil, and roasted snacks—products that are staples in Nigerian diets. This experience highlights both the nutritional importance and the entrepreneurial resilience of small-scale value chain actors.

People gathered at Doma Market around large sacks filled with peanuts

Stacked sacks filled with peanuts at Doma Market, with vendors and customers standing nearby.

The outcomes: The findings from the study will contribute to a deeper understanding of the groundnut sector dynamics, barriers to export, implication for nutrition in Nigeria and provide evidence-based recommendations for enhancing production, value addition, export competitiveness and sustainability of the crop.

Final reflections: Reviving Nigeria’s peanut value chain is an important food systems issue with implications for nutrition and livelihood which highlights the significance of effective technical and policy support to overcome all systemic barriers.

References

ThriveAgric. (2021, August 5). Groundnut production in Nigeria: Will the Groundnut pyramids of Kano be back? Medium. https://medium.com/thrive-agric/groundnut-production-in-nigeria-will-the-groundnut-pyramids-of-kano-be-back-8f011ea564ba

Peanut Institute. (2022, February 14). The impact peanuts have on the brain. The Peanut Institute. https://peanut-institute.com/are-peanuts-good-for-your-brain/

Ajayi, A. (2025, August 11). Groundnut pyramids of Northern Nigeria: The rise and fall of an iconic legacy. Pulse.Ng. https://www.pulse.ng/articles/lifestyle/groundnut-pyramids-of-northern-nigeria-2025081110034361965

Olagunju, D. (2017, November 1). Why North is shifting from groundnut pyramid to rice pyramid. Tribune Online. https://tribuneonlineng.com/north-shifting-groundnut-pyramid-rice-pyramid/