By Clarion Olusegun
The Cocoa Farmers Association of Nigeria (CFAN), through its allied organisation, the Cocoa Roundtable Initiative (CORI), has called on President Bola Ahmed Tinubu to support key reforms in Nigeria’s cocoa sector to boost productivity and ensure economic sustainability.
CORI’s Director-General and CFAN National President, Comrade Adeola Adegoke, in an open letter made available to AgroNigeria on Monday, appealed for government funding to transform the National Cocoa Management Committee (NCMC) into a formal board, support the National Task Force on the European Union Deforestation Regulation (EUDR), and provide subsidized farming inputs for cocoa farmers.
The letter praised the administration’s progress in advancing the economy and acknowledged the recent economic challenges, which the association reframed as “T-Gain” and “T-Sustainability.”
Highlighting the cocoa sector’s strong foreign exchange (FX) earnings, Adegoke noted that Nigeria’s cocoa exports surged by 304 percent in Q1 2024, accounting for 42.4 percent of the country’s agricultural exports.
According to him, such gains reflect the importance of supporting the NCMC, which was established in 2022 to regulate and advance the cocoa industry.
Part of the letter reads: “It is our firm belief that Nigeria is on a path to greatness despite the economic consequences of your administration’s reforms, which some have referred to as T-Pain. However, we see it as T-Gain and T-Sustainability.
“Cocoa Roundtable Initiative (CORI), whose mission is to promote the sustainability of Nigeria’s cocoa economy and the transformation of the livelihood of cocoa farmers through rural prosperity, is bringing to the attention of President Bola Ahmed Tinubu, the Commander in Chief of the Armed Forces of Nigeria, the need to fund and transform the National Cocoa Management Committee (NCMC) into a board, provide funding to the National Task Force on EUDR to safeguard the industry, and offer subsidized inputs to cocoa farmers to enhance their productivity. This will translate into more income for them and revenue for the government at all levels in 2025.
“Mr. President, it is important to note that the performance of the cocoa sector in generating FX and earning revenue in the non-crude oil sector cannot be overlooked. According to the NBS report, your Excellency, cocoa exports rose by 304 percent in the first quarter (Q1) of 2024 due to higher demand and a weak naira.
“The country’s cocoa exports, which accounted for 42.4 percent of the N1.04 trillion agricultural exports for the period, surged to N438.7 billion in Q1 2024 from N108.6 billion in the corresponding period of 2023. The stabilization of cocoa prices, which have not fallen below 10 million naira per metric ton over the last year, also indicates the strong prospects for this sector.”
However, he pointed out that the NCMC’s efforts have been hindered by funding and lack of formal legal status, adding that these issues jeopardize Nigeria’s ability to maintain international market standards and could lead to sanctions under the EUDR if unregulated practices persist.
“Additionally, the NCMC was established in August 2022 by the previous administration due to pressure from smallholder cocoa farmers in Nigeria under CFAN, who condemned the total free-market approach to the cocoa industry. This regulation is crucial due to the sector’s contribution to Nigeria’s economy, the challenges faced by smallholder cocoa farmers, and the need to address issues like low production, productivity, post-harvest challenges, quality control, and the EUDR implementation that poses future challenges to the global cocoa market.
“Cocoa Roundtable Initiative (CORI) appeals to your Excellency to seriously consider funding this critical sector to avoid reversing the current prosperity of our cocoa farmers due to EU sanctions on unsustainable cocoa by December 2024, now extended by another 12 months.
“This EU policy could affect Nigeria’s cocoa sector if proper regulation, funding, and a legal framework to support NCMC and NTF operations to combat industry challenges are not put in place. Mr. President, remember that one of your campaign promises was to create boards for key agricultural commodities—not to engage in buying but to develop and regulate these sectors. Cocoa should be prioritized as a leading foreign exchange earner and internal revenue generator in the country.
“Your Excellency, we believe the case of cocoa was settled with the establishment of the National Cocoa Management Committee (NCMC), but its operations have been hampered over the last two years due to lack of funding to perform its statutory regulatory responsibilities and its legal status to transform into a board through National Assembly backing.
“Funding has continuously affected the Committee’s ability to handle crucial responsibilities such as quality control, contract arbitration to safeguard investor funding, child labour monitoring and remediation, deforestation and afforestation programs, capacity building and development, cocoa and agroforestry intensification, rural infrastructure development, post-harvest challenges, traceability, climate change, and monitoring and evaluation of sustainability projects.”
While pledging CORI’s continued collaboration with key stakeholders, the Director-General urged President Tinubu to fulfill his campaign promise to create boards for vital agricultural sectors, prioritizing cocoa due to its significant contributions to foreign exchange and revenue generation.
His words: “We urge Mr. President, governors of cocoa-producing states, and supporters of the Nigerian cocoa industry to look into the funding and legal framework needed to support NCMC through the National Assembly. This is critical to saving the industry from regulatory lapses that could undermine the current gains of high cocoa bean prices, which are not less than 10 million naira per metric ton, and Nigeria’s goal to become the highest cocoa-producing country in West Africa by 2027.”
The letter concluded: “We assure Mr. President and industry players that the Cocoa Roundtable Initiative (CORI) will continue collaborating with relevant partners to bring development into the sector and deepen sustainable practices in our supply chain for a robust cocoa economy and transformative prosperity for our cocoa farmers.”
“We believe in your administration’s commitment to transforming the economy of the country, your Excellency, and your ability to address the issues raised inter alia.”