Nigeria is the largest producer of kolanuts in the world, with a total output of 140,842 tonnes, valued at $141mn. It is mainly produced in the South West states and is the subject of cattle for kolanuts exchange in the popular Sabo market of Sagamu. It is well known for its ceremonial consumption in the Southern and Eastern parts of Nigeria.
There has been increased price volatility of kolanuts due to logistics and transport constraints, especially the price of diesel. The domestic and industrial demand of kolanuts and the nocturnal student use have combined to increase the aggregate demand for kolanuts. Thus, making it a major domestic commodity. However, the side effects of this commodity, which include insomnia and its caffeine effect are drawing criticism by the anti-narcotic movements.
The attached document contains a snapshot of the global and domestic developments in the commodities market this week.
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