FG plans review of cocoa value chain to drive forex earnings

President Muhammadu Buhari has said that the federal government ‎is currently planning a review of Nigeria’s cocoa value chain to boost foreign exchange earnings in the sub-sector, as he bemoans Nigerian 7th position in global cocoa production.

Buhari made the disclosure on Monday ‎at the opening ceremony of the country’s first International Cocoa Summit held in Abuja, stating that the summit is an initiative that focuses on opening the economy to local and foreign investors while also encouraging strategic partnerships for resuscitation of the cocoa sub-sector of the economy.

“This summit is designed to be part of this administrations agricultural revolution with Cocoa‎ as one of the main drivers. Cocoa is the second largest foreign exchange earner for Nigeria after crude oil and has generated over 2 million jobs directly and indirectly along its value chain,” the President said.

‎Represented by Audu Ogbeh, Minister of Agriculture and Rural Development, the President regrets that the agricultural sector has suffered neglect as a result of over reliance on crude oil. According to him, it led to decline in the country’s annual production from 420 metric tons in the 60s to 192,00 metric tons in 2015.

The consequence, he said is Nigeria’s dropping from 4th to 7th position in global cocoa production, while promising to work with the country’s ‎Cocoa Association more closely in opening investment channels for investors across the cocoa value chain.

Nigeria previously ranked 4th behind Indonesia, Ghana and Cote d’Ivore among global cocoa producing countries, but now ranked 7th due to negligence, as the country is yet to explore advantages of new variety of cocoa seeds with high yields, and climate adaptability.

Nigeria has viable 28 states that could grow cocoa effectively,but is making using of only fewer states.

‎Also speaking, Okechukwu Enelemah, Minister of Industry Trade and Investment, assured those in the cocoa sub-sector of the federal government’s continued support to ensure that the country compete favourably with their counterparts in other climes.

He states further that the federal government is working hard to improve the business environment for investors as well as encouraging the development of domestic consumption.

Enelemah also urged stakeholders in the cocoa sub-sector to work closely with the federal government towards improving the production, processing, packaging and marketing of our non-oil export commodities‎.

BusinessDay findings revealed that despite $80bn annual market size of cocoa and coffee industries globally, African farmers only have $5bn share from that market, which is largely attributed to poor value addition in the sub-sector, while also throwing up investment opportunities in the processing of cocoa in the country, and Africa.

Sayina Riman, president, Cocoa Association of Nigeria said at that the association would come up with a 5 year strategic plan that would deepen public private partnerships in the sector, while opening the sector up for further investments.

 

HARISON EDEH, Abuja