Stakeholders in Nigeria’s cocoa production sector are calling on the Federal Government to enhance support for the industry by transforming the National Cocoa Management Committee (NCMC) into a full-fledged board. They also seek funding for the National Task Force on European Union Deforestation Regulation (EUDR) and subsidized agricultural inputs for farmers to boost cocoa productivity in the new year. This appeal was made in an open letter to President Bola Tinubu, signed by Comrade Adeola Adegoke, Director-General of Cocoa Roundtable Initiative (CORI) and National President of the Cocoa Farmers Association of Nigeria (CFAN).
Highlighting the challenges faced by the NCMC, Adegoke emphasized the need for funding to address critical areas such as quality control, contract arbitration, child labor monitoring, deforestation, climate change mitigation, and post-harvest issues. The NCMC, established in 2022, has struggled with limited resources despite its role in ensuring sustainability and safeguarding the interests of investors and cocoa farmers. According to Adegoke, the lack of financial support hampers progress in building infrastructure, improving traceability, and implementing sustainability projects.
Adegoke pointed to the sector’s significant foreign exchange (FX) earnings as a testament to its potential. The National Bureau of Statistics (NBS) reported a 304% increase in cocoa exports in the first quarter of 2024, driven by rising global demand and a weaker naira. Cocoa exports contributed 42.4% of Nigeria’s N1.04 trillion agricultural exports during this period, surging to N438.7 billion from N108.6 billion in the same quarter of 2023. These achievements underscore the sector’s economic importance and the need for strategic investments.
The letter also addressed the stability of cocoa prices, which have remained above N10 million per metric ton over the past year, offering a positive outlook for the industry. However, stakeholders stress the importance of regulations to protect smallholder farmers and the overall industry from challenges like low productivity and compliance with EUDR standards. Without a robust framework, Nigeria risks losing its competitive edge in the global cocoa market.
Stakeholders believe that transforming the NCMC into a regulatory board and supporting cocoa farmers with subsidies and capacity-building initiatives will position Nigeria as a leader in the global cocoa trade. They urge the Federal Government to prioritize funding and policy reforms to unlock the full potential of the cocoa sector in 2024 and beyond.
