By Grace Samuel
The Nigerian Export-Import Bank, NEXIM, has stated that the West African sub-region was under-utilising the revenue potentials accruable to cocoa production and exportation.
According to NEXIM, the global cocoa industry generates a whopping $200billion every year. Surprisingly, West Africa, which produces 75 percent of the world’s cocoa, only earns less than $10billion annually from this industry.
Over the years, Nigeria has lost its top position in cocoa production and export, now ranking fourth behind Cote d’Ivoire, Ghana, and Indonesia.
Managing Director of NEXIM, Abba Bello, revealed this information during a press briefing on the sideline of the upcoming International Cocoa and Chocolate Forum (ICCF) scheduled to hold January 9th to January 11th 2023 in Lagos.
Also speaking, General Manager/Head of Strategy and Corporate Communications at NEXIM Bank, Tayo Omidiji,
emphasized the importance of collaboration among policymakers, researchers, the private sector, and financial institutions to unlock the immense potential of the Nigerian cocoa industry.
He mentioned that the upcoming summit aligns with President Bola Tinubu’s Renewed Hope Agenda, which aims to diversify the economy, address foreign exchange scarcity, and create more job opportunities across the country.
“It’s really eye-opening to learn that the entire West African region, including Cote d’Ivoire, Ghana, Cameroon, and Nigeria, which accounts for 70-75 percent of global cocoa output, only earns $10 billion out of the industry’s $200 billion annual worth.
“This highlights the urgent need to address the challenges and attract investments in this sector,” he stated.
He continued: “According to the International Trade Centre (ITC) report, in 2021, Nigeria produced 208 metric tonnes of cocoa beans but only made $628 million in income. On the other hand, Germany, which doesn’t even grow cocoa, earned a massive $57.3 billion from exporting cocoa products.
“It’s clear that there’s a huge opportunity for Nigeria and the rest of the West African region to unlock the full potential of the cocoa industry and increase their earnings. This upcoming summit sounds like a great chance to discuss strategies and tackle the challenges holding back the industry’s growth.
“That’s so cool! The International Cocoa and Chocolate Forum (ICCF) 2024 Nigeria edition is happening in partnership with NEXIM Bank and the Cocoa Research Institute of Nigeria (CRIN).”
He pointed out that the theme for this edition is all about “Putting Value in Cocoa at Producing Regions.”
Omidiji informed that the conference is a continuation of the discussions from the UK edition held in October 2023, which focused on the new EU policy and its impact on cocoa-producing regions.
“I’m really excited to see how this forum will contribute to the resilience and transformation of cocoa farmers. And it’s awesome that it’ll be taking place in both Abuja and Lagos”, he added.