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June 21, 2024

W’Africa Earns 5% Revenue Despite Producing 75% of $200bn Global Cocoa Industry

The Nigerian Export-Import Bank (NEXIM) has revealed that the global cocoa industry is worth $200 billion annually and West Africa, which produces 75 percent of the world’s cocoa supply, makes less than $10 billion annually from the industry.

According to NEXIM, Nigeria has lost its leading position in the production and export of cocoa over the years, now ranking as fourth producer behind Cote d’Ivoire, Ghana and Indonesia.

The disclosure was made known by the Managing Director of the Nigerian Export-Import Bank (NEXIM) Abba Bello, at a press briefing to announce the International Cocoa and Chocolate Forum (ICCF) 2024 to be held in Abuja on the 9th and Lagos on the 11th of January.

Represented by Tayo Omidiji, general manager/head of strategy and corporate communications, NEXIM Bank added that there is a need for all hands to be on deck amongst all stakeholders, including policymakers, researchers, organised private sector and financial institutions, to discuss strategies to crowd in investments and address all the other issues militating against the huge potentials in the Nigerian Cocoa industry.

According to him, the upcoming summit aligns with the Renewed Hope Agenda of the President Bola Tinubu administration to promote economic diversification, address scarcity of foreign exchange and enhance job creation nationwide.

However, “It is instructive to note that the cocoa industry (including beans, cake, chocolate, etc.) is worth $200 billion annually, out of which the entire West African producing region (made up of Cote d’Ivoire, Ghana, Cameroon, and Nigeria), which accounts for about 70-75 percent of the global output, earns only $10 billion.

“To further drive home the point, I would like to refer to the report by the International Trade Centre (ITC) in 2021,” he said.

He noted that Nigeria produced 208 MT of cocoa beans in 2021 but generated a total income of $628 million, citing the ITC data. However, Germany, which did not produce cocoa, earned a whopping $57.3 billion from the export of cocoa products, he said.

Bello explained that Nigeria has lost its leading position in the production and export of cocoa over the years to now rank about the 4th producer behind countries like Cote d’Ivoire, Ghana and Indonesia owing to aged plantations and lack of investment in the sector over the years.

The International Cocoa and Chocolate Forum (ICCF) 2024 Nigeria edition is being organized in partnership with NEXIM Bank and Cocoa Research Institute of Nigeria, CRIN, and this edition is themed, ‘Putting Value in Cocoa at Producing Regions.’

Dokun Thompson, oloni of Eti-Oni, Osun state Nigeria and founder, International Cocoa Diplomacy said that ICCF 2024 Nigeria is a follow-up on the discussion at the recently concluded UK edition in October 2023 which had the theme: The new EU policy, its effect on cocoa producing regions and the way forward for the global cocoa trade and an industry that supports transformation with regards to the resilience of cocoa farmers to be held both in Abuja and Lagos.

“ICCF2024 – Nigeria is a call to action to continue the discussion where policy formation will meet investment requirements for the sole purpose of creating the cocoa culture that will begin to intentionally add value to cocoa and create wealth at origin to reduce the dominance of the industry by consuming regions and also to explore ways for shared value and prosperity creation purposes,” Thompson said.

There will also be other panelists of policymakers and stakeholders who will discuss several important topics including: the impact of EUDR compliance on the Nigeria cocoa sector: Opportunities and Consequences, COP28 Resolutions: Climate-resilience in the Nigerian cocoa sector, and expand thinking beyond cocoa beans and the opportunities for investment and job creation,” he added.

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