The Alternative Bank Limited, a subsidiary of Sterling Financial Holdings Plc focused on ethical banking, has proposed measures that the Federal Government of Nigeria can implement to enhance the nation’s cocoa production and export activities.
In an interview with the News Agency of Nigeria on Sunday in
Lagos, Gbenga Awe, the bank’s group head of Structured Trade and Commodities
Finance, proposed the measures.
Mr. Awe astutely observed that the Nigerian cocoa industry
has the potential to become the leading cocoa exporter in Africa, provided that
appropriate measures are implemented.
“The Nigerian cocoa industry is crucial to the economy,
ranking fourth in global production and third in exports. With a decline in
supply from Ivory Coast and Ghana, Nigeria has an opportunity to become the top
exporter.
“However, challenges such as inadequate research and
development and limited sustainable farming practices persist.
“By investing in modern agricultural practices and
infrastructure, Nigeria can significantly increase its cocoa production and
quality.
“The Nigerian government can increase the amount of cocoa
produced by creating regulations that are favourable to the industry.
“Also by offering financial support at affordable rates,
financing agricultural research and development, marketing Nigerian cocoa
abroad, and instituting tax holidays or subsidies for cocoa exporters.
“To elevate Nigeria’s cocoa output to match Ivory Coast,
adopting modern agricultural practices and planting high-yield seedlings is
crucial,” Mr Awe told NAN.
He also reiterated that, “To guarantee a consistent supply
to the international market, the government must spend in research and
development to create high yield cocoa varieties that mature in less than two
years.
Awe mentioned that the bank collaborates with prominent
cocoa exporters, offering financial assistance and support to augment
productivity and facilitate market accessibility.
“To revive the cocoa sector, exporters must focus on value
addition. Exporting raw cocoa beans limits its revenue potential.
“At Alternative Bank, we ensure our customers add value to
their cocoa before exporting and this is evidenced in the number of cocoa
factories we have funded for equipment acquisition and raw material sourcing
for chocolate and other by- products production.
“This has resulted in enhanced export proceeds and foreign
exchange inflows,” Group Head said.
He emphasized the critical importance of optimizing Nigeria’s
cocoa value chain to enhance revenue generation within the sector..
“Nigeria’s cocoa value chain needs to be optimised, and to
do so, we need to establish cocoa processing facilities, invest in quality
control, farm mechanisation, enhance farmer training, and create effective
marketing plans to ensure our cocoa products are attractive to the global
market.
“The bank supports the value chain by providing financing
for all the players across the value chain, partnering with industry leaders to
achieve value addition to their products before export.
“This drives economic growth and increases stakeholder
revenue, making Nigerian cocoa more competitive globally.
“To restore agriculture’s prominence, Nigeria needs to
diversify its economy, revitalise agricultural education, provide incentives
for farmers, improve market access, and raise awareness about agriculture’s
economic benefits,” he said.
The Alternative Bank is an autonomous financial institution
operating within the Non-interest Banking sector.
Commenced in 2014, our bank is committed to upholding
Non-Interest Banking principles. To ensure this, we have established an
Advisory Committee comprised of esteemed experts in the field.