Cocoa Crisis Unveiled: Nigeria’s $2 Billion Annual Loss Rings Alarm Bells

Cocoa Crisis Unveiled: Nigeria’s $2 Billion Annual Loss Rings Alarm Bells

Key figures in Nigeria’s finance and agriculture sectors have unveiled a shocking revelation at the 2024 International Cocoa and Chocolate Forum……CONTINUE READING

The nation is losing a staggering $2 billion each year from an under-exploited cocoa industry, a disclosure that underscores the untapped potential within the sector.

The forum, attended by influential figures including the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Minister of Budget and Economic Planning, Senator Abubakar Atiku, highlighted the urgent need to address the challenges hindering Nigeria’s cocoa industry from reaching its full potential.

A communiqué signed by HRM Oba Dokun Thompson, Dr. Patrick Adebola, and Mr. Abba Bello emphasized the critical discussions around strategies for leveraging the African Continental Free Trade Area (AfCFTA) and navigating the new European Union Deforestation Regulation (EUDR).

The lack of awareness and preparedness within Nigeria’s cocoa supply chain and smallholder cocoa farmers regarding the impending EUDR policy, set to take effect on January 1, 2025, could potentially disrupt the industry’s supply chain and the country’s forex earnings.

Despite being the fourth-largest producer and exporter of cocoa globally, with receipts close to US$700 million, Nigeria’s cocoa industry has faced a decline. The lack of a comprehensive policy, mapping, identification, and data hampers the industry’s ability to respond to global regulations and plan for economic and social development purposes.

The communiqué pointed out the need for creative funding to fully develop the industry’s opportunities, highlighting the underfunding of the Cocoa Research Institute of Nigeria (CRIN) and the lack of structural funding for NEXIM Bank.

The forum also stressed the importance of transitioning from a cocoa-producing to a consuming nation, urging deliberate consumption of cocoa products and the inclusion of cocoa derivatives in national programs like school feeding initiatives.

As the nation grapples with this revelation, the call to de-commoditize cocoa emerges as a pivotal step towards achieving value addition, inclusive development, and wealth creation.

The plea for a recalibration of government policies and a focus on infrastructure development echoes throughout the forum’s discussions, emphasizing the need for a comprehensive approach to rejuvenate Nigeria’s cocoa industry.