‘Cocoa Beans Currently Valued at N11.2m per Ton in Nigerian Market,’ – Agric Minister

Clarion Olusegun

The Honourable Minister of Agriculture and Food Security, FMAFS, Senator Abubakar Kyari, stated that cocoa beans are currently valued at N11.2 million per ton in the Nigerian market, reflecting a significant increase in the value chain compared to previous market returns.

The minister made this announcement yesterday during a courtesy visit by the National Cocoa Management Committee (NCMC) held in the Honourable Minister’s Conference Room in Abuja.

In his words: “Nigeria’s cocoa export accounts for 28.72% of total agricultural exports (N1.24 trillion) in 2023 and 5.6% of non-oil exports. In January 2024, a ton of cocoa beans was valued at N1.8 million, while it is now valued at N11.2 million per ton in the Nigerian market.”

He also disclosed that Nigeria generated N356.16 billion worth of cocoa beans and allied products in 2023, making it the highest agricultural contributor to the GDP.

According to him, the recent developments in the cocoa industry imply that cocoa in Nigeria is economically viable for investment both locally and internationally.

Speaking further, he lauded the members of the National Cocoa Management Committee (NCMC), who are responsible for coordinating the Nigerian cocoa sector. He added that, “the Committee is also tasked with guaranteeing quality, transparency, and sustainability in the cocoa value chain. The establishment of NCMC underscores the importance of cocoa to the economy.”

“I was informed that the NCMC is well-positioned to implement the National Cocoa Plan, which is being championed by both the Federal Ministries of Agriculture & Food Security and Industry, Trade, and Investment.

“This initiative aims to boost cocoa production and ensure Nigeria takes its rightful place among the top cocoa-producing countries in the world.”

Addressing the issue of the European Union Deforestation Regulation (EUDR) threats to Nigerian cocoa, he emphasized the urgency of undertaking Nigeria’s EUDR Preparedness Assessment Check.

He pledged that FMAFS would support the European Union (EU) in conducting the assessment, as has been done for other cocoa-producing countries such as Ghana and Côte d’Ivoire.

He also noted, as mentioned by the NCMC Chairman, that the ministry would work through the NCMC to access African Development Bank (AFDB) funds to support the development of cocoa in Nigeria and the implementation of the National Cocoa Plan (2023-2032).

Finally, he urged the committee to put all hands on deck to champion the way forward for Nigerian cocoa, thereby achieving all set objectives of the NCMC.

Read more About NCMC

National Cocoa Management Committee (NCMC) was the outcome of interactive meeting between the Nigerian delegation and Ghana Cocoa Board in Accra, Ghana on 19th May 2022. The Honourable Minister of Agriculture approved the establishment of the National Cocoa Management Committee (NCMC), a national coordinating body expected to guarantee quality, traceability, transparency, and sustainability in Cocoa Value Chain on 2nd August 2022 for the purpose of developing a framework for the regulation and monitoring of Cocoa sector’s activities.

The NCMC at their inaugural meeting, came up with draft Bill for the establishment of the National Cocoa Management Board/Commission for the management of Cocoa Value Chain in the Country. The NCMC held its first meeting in Abuja on 3rd – 4th November 2022 and two other meetings in Abuja and Akure, Ondo State respectively.

 The meeting discussed issues on how to develop a framework for the coordination, regulations, and monitoring of Cocoa activities in the Country and European Union Child Labour/ EU Deforestation Regulation (EUDR) for implementation and compliance.

The NCMC and the International Finance Corporation (IFC), the private sector arm of the World Bank on 19th April 2024 organised a Technical Roundtable Stakeholder meeting on Increasing the Competitiveness of Nigeria’s Cocoa Sector in the Global Market in Akure, Ondo State. The outcome of the Stakeholders meeting is to raise awareness on the requirement of the EUDR/Child Labour in the Cocoa industry; gain insights into the actions being taken by the regulatory agencies, the private sector and development partners to ensure compliance; develop and agree on a roadmap that will support and facilitate compliance with the EUDR and identify implementation/compliance gaps and also agree on an action plan for the EUDR/Child Labour.           

NCMC comprises eleven (11) members drawn from all relevant stakeholders in the public and private sectors in line with Global Best Practices. They include:  

TERMS OF REFERENCE

The outlined terms of reference are as follows:

• To develop a framework for the regulation and monitoring of the activities of the Cocoa sector to make the industry more transparent; to develop a strategic plan towards the establishment of a Nigerian Cocoa Board/Commission.
• The NCMC, as an important regulatory body in the Nigerian Cocoa sector shall upscale their activities to all cocoa producing states.
• The NCMC shall organise and conduct a national conference for Commissioners of Agriculture from 36 states and FCT to sensitize them on the importance of cocoa and efforts of the Federal Government towards increased production.
• The NCMC shall develop Local, State and Federal Government strategic implementation plan of the National Cocoa Management Committee.
• Developing a Nigerian charter towards joining the Ghana/Cote d’Ivoire initiative.
• The NCMC shall establish data bank for all Multinational Companies and Exporters of Cocoa Beans from Nigerian Ports.

ACHIEVEMENTS

• NCMC has been able to bring together relevant stakeholders towards chatting a new direction for the cocoa sector.
• NCMC has held three (3) previous meetings out of which two were sponsored by Outspan Nigeria Ltd and Traceability and Resilience in Agriculture & Ecosystem (TRACE) project respectively. In view of the funding challenge of NCMC, we seek the support of HMA towards funding of the Committee activities.
• NCMC has enabled a proper coordination within the Cocoa industry which was lacking due to non-regulation of the Cocoa sector in Nigeria, unlike Ghana with full regulation while Cote d’Ivoire has partial regulation.
• NCMC has enabled major players in the Cocoa sector to have a forum through which ideas are discussed for the growth of the sector.
• NCMC has partnered Lutheran World Relief project in Nigeria, The Traceability and Resilience in Agriculture (TRACE) project in Nigeria.

CHALLENGES

• Funding of the committee activities.
• Lack of Legislative backing.
• Meeting the EUDR target on deforestation.
• Lack of national traceability system in Nigeria.

WAY FORWARD:

• Funding for NCMC.
• The need for strengthening of NCMC to metamorphose into National Cocoa Board as obtained in Ghana Cote d’Ivoire and Cameroon.
• The need for an emergency in the Cocoa sector to avoid the impending EUDR threats and access to the carbon credit funds.
• Urgent need for Nigeria’s EUDR Preparedness Assessment Check. This is line with the request by EU through EU representative, Mr Rikard Nordeman that Nigeria signifies interest to be supported via writing.
• Partial regulation of the Cocoa Industry in Nigeria to guarantee quality, transparency, traceability, and sustainability.
• Need for a Central National Cocoa Database and Forest/ Cocoa plantations remapping for the purpose of Traceability and Certification, Deforestation-Free and Legality Compliance records.
• The need for the implementation of the 10year National Cocoa Plan (2023-2032) by the NCMC.
• Nigeria generated N356.16 billion worth of Cocoa beans and its allied products in 2023 which makes it the highest agricultural contribution to the GDP.
• The export of the commodity accounts for 28.72% of total agricultural export (1.24 trillion) in 2023 and 5.6% of non-oil exports for same period (Business Day).
• A metric ton Cocoa commodity sell for an average of N11.2million in Nigeria in comparison to the previous price N1.8million /metric ton January 2024.
• NCMC was informed that there is a special fund for Cocoa development from AFDB which Cote d’Ivoire and Ghana have accessed, and we therefore seek the support of HMA to access it.

***The need for an emergency in the Cocoa sector to avoid the impending EUDR threats and also access to the carbon credit funds.