President Muhammadu Buhari said the federal government plans to review Nigeria’s Cocoa value chain to boost foreign exchange earnings, as he bemoans Nigeria’s 7th position in global cocoa production.
Buhari made the disclosure on Monday at the opening ceremony of the first International Cocoa summit 2017 in Abuja. He stated that the summit serves as a platform that will open 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,” said the President who spoke through his representative, Audu Ogbeh, Minister of Agriculture and Rural Development.
He also expressed concern that the sector has suffered neglect as a result of over reliance on crude oil. This led to decline in the country’s annual production from 420 Metric tons in the 60s to 192,00 Metric tonnes in 2015.
The consequence was Nigeria’s drop from 4th to 7th position in global cocoa production.
The President promised to work with Cocoa Associations more closely in opening investment channels to both local and foreign investors in cocoa value chain.
Nigeria previously ranked number four behind Indonesia, Ghana and Cote d’Ivore among Cocoa producing countries. It has however fallen behind at 7th due to negligence. Experts say the country is yet to explore the advantages of new variety of cocoa seeds with high yields, and climate adaptability.
Nigeria has 28 states that could grow cocoa effectively, but has to depend on a few of the states that are productive.
Nigeria’s Minister of Industry Trade and Investment Okechukwu Enelemah assured those in the cocoa sub-sector of the federal government’s determination to help them operate and compete favourably with their counterparts in other climes.
He stated that the federal government is working hard to improve the business environment for both local and foreign investors as well as encourage the development of domestic consumption.
Enelemah also urged stakeholders in Cocoa value chain to work closely with the federal government towards improving the production, processing, packaging and marketing of non-oil export commodities.
BusinessDay findings revealed that despite $80 billion annual market size of cocoa and coffee industries globally, African farmers only have $5bn share from that market.
Sayina Riman, President Cocoa Association of Nigeria, said at the summit 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.
