News in brief:
– Nigerian cocoa farmers are urging President Tinubu to address funding gaps threatening the industry’s growth.
– The association calls for regulation and subsidies to boost productivity and support economic goals.
The Cocoa Farmers Association of Nigeria (CFAN) recently voiced serious concerns about the lack of adequate funding in the Nigerian cocoa industry, urging President Bola Tinubu to fulfil campaign promises of prioritizing key agricultural sectors.
In an open letter signed by CFAN’s National President, Adeola Adegoke, they highlighted the need for financial support to sustain the industry’s growth, protect foreign exchange earnings, and improve farmers’ livelihoods.
The call comes as cocoa prices have reached a high of ₦10 million per metric tonne, spurred by increased global demand and Nigeria’s economic reforms, according to the Nigerian Bureau of Statistics (NBS). However, CFAN warns that progress could be hindered without funding, risking Nigeria’s ambitions of becoming West Africa’s top cocoa producer by 2027.
The cocoa industry’s role in Nigeria’s economy
Cocoa exports contributed 42.4% of Nigeria’s agricultural exports in the first quarter of 2024, valued at ₦438.7 billion, marking a 304% increase compared to the same period in 2023. This surge is attributed to high demand and the naira’s weak exchange rate, highlighting cocoa’s critical role as one of Nigeria’s top non-crude foreign exchange-earners.
Adegoke noted that the National Cocoa Management Committee (NCMC), established to regulate quality and productivity, has faced operational challenges due to a lack of funding. Without proper support, issues such as child labour monitoring, quality control, and investor protection are difficult to manage, risking Nigeria’s cocoa market competitiveness.
Advocating for policy and financial support
CFAN has asked the government to transform the NCMC into a statutory board to ensure effective regulation of the cocoa sector. They also demanded subsidies on farming inputs, increasing cocoa productivity and farmers’ income by 2025. Additionally, a well-funded regulatory body could strengthen Nigeria’s adherence to the European Union Deforestation Regulation (EUDR), safeguarding its $1 billion industry investments from international restrictions.
By addressing funding shortfalls, the association believes Nigeria can achieve economic gains and position itself as a global leader in cocoa production, with a target of surpassing Ghana and Ivory Coast within three years.
