This appeal comes as the European Union plans to impose sanctions on unsustainable cocoa in its market after December 2024, with an extension of an additional 12 months.
Representatives from the Cocoa Roundtable Initiative (CORI) highlighted that the EU policy could negatively impact Nigeria's cocoa sector unless adequate regulations, funding, and a legal framework are established to support the National Cocoa Management Committee (NCMC) and the National Task Force (NTF) in addressing industry challenges.
The group has called on the President, the Governors of cocoa-producing states, and advocates for the Nigerian cocoa industry to prioritize funding and legal support for the NCMC through the National Assembly. This is essential to protect the industry from regulatory shortcomings that could jeopardize the current benefits of high cocoa bean prices, which are currently exceeding 10 million per metric ton, and Nigeria's ambition to become the leading cocoa producer in West Africa by 2027.
CORI, dedicated to promoting the sustainability of Nigeria's cocoa economy and improving the livelihoods of cocoa farmers through rural prosperity, is drawing President Tinubu's attention to the urgent need for funding and transformation of the NCMC. This body is responsible for regulating Nigeria's cocoa economy and requires support for the NTF on the EU Deforestation Regulation (EUDR) to safeguard an industry valued at one billion dollars.
Additionally, CORI advocates for the provision of subsidized inputs for cocoa farmers to boost their productivity, which would ultimately lead to increased income for them and higher revenue for government entities at all levels by 2025.
In a correspondence directed to President Tinubu, Adeola Adegoke, the Director General of the Cocoa Roundtable Initiative (CORI) and National President of the Cocoa Farmers Association of Nigeria (CFAN), emphasized the significant contributions of the cocoa sector over the past year in generating foreign exchange and leading earnings within the non-crude oil industry.
He referenced a report from the National Bureau of Statistics (NBS), which indicated that cocoa exports experienced a remarkable increase of 304 percent in the first quarter of 2024, driven by heightened demand and a weakened naira. During this period, cocoa exports represented 42.4 percent of the N1.04 trillion in agricultural exports, soaring to N438.7 billion in Q1 2024, compared to N108.6 billion in the same quarter of 2023.
Adegoke highlighted the positive outlook for the sector, noting that cocoa prices have stabilized at no less than 10 million naira per metric ton over the past year.
He also pointed out that the Nigerian Cocoa Marketing Company (NCMC) was established in August 2022 by the previous administration in response to demands from smallholder cocoa farmers under CFAN.
These farmers criticized the unregulated free market in the cocoa industry, stressing the sector's vital role in Nigeria's economy, the challenges faced by smallholder farmers due to low production and post-harvest issues affecting quality, and the necessity for a framework to address the European Union Deforestation Regulation (EUDR) that could impact the future of the global cocoa market.
Adegoke reminded the President of his campaign promise to establish boards for key agricultural commodities, which would focus on development and regulation rather than purchasing. He urged that cocoa should be prioritized as a leading provider of foreign exchange and a significant source of internal revenue for the nation.
Your Excellency, we believe that the establishment of the NCMC resolved the cocoa issue; however, its operations have been significantly hindered over the past two years due to insufficient funding necessary for fulfilling its statutory regulatory duties and the need for legal recognition to transition into a board with the support of the National Assembly.
The lack of funding has consistently impacted the Committee's ability to sustain its responsibilities in various areas, including quality control, contract arbitration to protect investor funding, monitoring and remediation of child labor, deforestation and afforestation initiatives, capacity building and development, intensification of cocoa and agroforestry, rural infrastructure in cocoa communities, addressing post-harvest challenges, ensuring traceability, tackling climate change, and evaluating numerous sustainability projects and activities, among others.