Cocoa shipment resumes after Cross River levy dispute ends

Exporters have resumed loading of cocoa shipments in Nigeria’s second-largest producing area, Cross River State, after the state government suspended weekend a levy on bean exports, a trade body said, reports Reuters.

Cocoa shipments from Cross River, which produces annual volumes of around 60,000 tons in the world’s fourth-biggest producer, had been halted for over a week as exporters protested the state’s failure to adhere to a court ruling last week to repeal the tax.

About 500 tons of cocoa due for export were stuck in warehouses while shipments were suspended.

The Cross River State government in 2011 introduced a levy on cocoa exporters who ship the beans through Nigerian seaports other than the state’s Calabar port. Exporters went to court to stop the levy.

The state aims to generate revenue through its seaport and compete with more established seaports in the commercial capital Lagos. Cocoa farmers said they paid around N300 million last year to the state government in levies.

Godwin Ukwu, spokesman for the Cocoa Association of Nigeria, said weekend that the state government had suspended the N5,000 naira per ton levy on cocoa exports, pending a meeting with exporters on Tuesday.

“The levy has been suspended for now … Exporters have started loading cocoa. Trucks will be leaving between today and Tuesday,” Ukwu said.
Cocoa exports from Cross River are usually destined for Europe. Taxes on exports including cocoa are usually collected by the Federal Government.