As the majority in Nigeria continues to lament the hardship induced by the cash redesign directive implemented by the Central Bank of Nigeria (CBN), the policy has had a ripple effect on most sectors and areas of business in the country. Export of cocoa in Nigeria has also been hit by the hardship resulting from the new note scarcity within the country. Due to this, merchants are finding it relatively hard to pay laborers and delivery drivers with cash, which has further inflamed the global supply.
While the majority detest the policy due to the hardship experienced, it is important to note that some individuals, business operations and sectors are already adapting to the new changes. But in an area like the cocoa industry where the daily activities are carried out by paying laborers with cash at every process, the policy has landed a big blow. Cocoa farmers have bewailed the new note scarcity hardship as they are unable to hire and pay workers and exporters to get their produce moved to the ships.
The predicament might exacerbate the supply worries.
Cocoa, as you know, is Nigeria’s most lucrative agricultural export. In 2022 Q1, N122.89 billion was earned from the export of raw cocoa beans and cocoa products according to the National Bureau of Statistics and Analytics (NBS). Mufutau Abolarinwa, president of the Cocoa Association of Nigeria has expressed concern that the nation, which is the world’s fifth-largest producer of the chocolate component, may be unable to export as much as 30,000 tons in February.
Furthermore, Abolarinwa explained that they do not have enough new notes to pay for all of the essential services, such as grading fees, handling costs, freight, and other incidentals, all of which are generally paid in cash. The predicament might exacerbate the supply worries that have driven London cocoa prices to a six-year high. Last week, futures rose more than 6% on reports of bean shortages in top supplier Ivory Coast, fanning concerns that some exporters may default on contracts.
Shortage of cash have forced some exporters to halt operations.
Atangba Bonjor, a cocoa farmer in Ikom, Nigeria’s southeastern region, believes the cash constraint would affect next cocoa plantings because landowners won’t be able to pay their employees’ daily salaries, resulting in a labor scarcity to clear and weed plantations. Isaac Arayela, manager of the Ile-Ife Cooperative Product Marketing Union, a cocoa farmer group, concerns the paucity of new notes as a barrier to fresh delivery. Arayela further said that around 500 tons of the union’s produce is being stored in warehouses owing to a lack of funds to pay members for their cocoa supply since they refused bank transfers.
This followed a drop in Nigerian cocoa exports caused by unfavorable weather and fungal challenges that delayed the major crop harvest. The nation exported 36,571 tons in December, while January export data is still pending. According to Kunle Ayoade, managing director of Agro Traders Ltd., a cocoa exporting firm, cash shortages have forced some exporters to halt operations. Exporters often pay laborers and truck drivers in cash at the point of loading and unloading to the ships.
CFAN aim of 500,000-tons cocoa bean produce by 2024 is jeopardized.
In addition, as the cash crunch continues to impede overall cocoa sector activity, the Cocoa Farmers Association of Nigeria (CFAN) commitment to attain 500,000-tons of cocoa bean produce by 2024 is jeopardized. Nigeria currently produces over 300,000 tons per year, with an average yield of 350 kg/400 kg per hectare. However, if the CFAN target is met, Nigeria would overtake other West African Nations producing cocoa over the next four years.
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Cash hardship affect Nigeria cocoa exports. – Cocoa farmers bewailed new note scarcity hardship, unable to pay workers. – Express your point of view.
There is shortage of cash every where. It is so difficult to do business now. It affecting the cocoa industry is not surprising. Everyone has majorly been affected.
Even though most Nigerians still complain about the problems caused by the Central Bank of Nigeria’s mandate to redesign the currency, the policy is now having an effect on almost every part of the economy.
This system has caused reverberations that have been felt throughout the country’s vast majority of economic spheres.
The shortage of fresh notes in Nigeria has also had a negative impact on the country’s cocoa export industry, which is already struggling to survive.
The fact that it is becoming more difficult for business owners to pay their employees and delivery workers with cash has contributed to the already tense global supply situation.
Even though many people are unhappy with the policy because of the difficulties it has caused, it is essential to remember that certain people and industries are adjusting to the new circumstances.
The majority dislikes the policy because of the pain it has caused, but it’s crucial to remember that certain people, businesses, and industries are already adjusting to the new developments.
It’s unfortunate that they don’t have enough new money to pay for all of the necessary services, but they do.
It is possible that the situation will make supply worries even more severe, which has resulted in London cocoa prices reaching a six-year high.
It is important to keep in mind that certain people and industries are adapting to the new circumstances, even though many people are unhappy with the policy due to the difficulties it has produced.
The new note scarcity is a big concern and it having negative impacts in all sectors and ramifications; even if sectors are already adapting to the new changes, it is really important FG proffer better solutions.
So cocoa farmers are also affected by the cash hardship. Well it’s not surprising, I just hope they settle this issue in due to time to bring peace to the communities.
The majority of people in the country economy operate on the cash level,so when the new monetary policy came to place and also change of money issue,it really change scope of things in the economy.
The cash hardship affect every business in the country unable to use cash for some payment which it affect everyone in the country
Since many industries have already adjusted to the new realities, it is crucial that FG give more workable alternatives to the current note shortage.
It’s important to keep in mind that while many are frustrated by the policy’s effects, others are learning to work within the new framework.
Notwithstanding widespread discontent with the policy as a result of its unintended consequences, it is crucial to remember that certain individuals and companies are adjusting to the new normal.
When loading and unloading cargo onto ships, exporters frequently hand cash payments to the laborers and truck drivers who assist them.
Cash hardship affect Nigeria cocoa exports. Nigeria is passing through a lot now. The shortage of cash has affected so many things
The cash shortage has posted a great challenge to many Nigerians and crippled business. Now Cocoa exports is facing same hardship. We all know that this cash scarcity is politically motivated
For the Nigeria cocoa exports to bewailed the new note scarcity hardship it means it i has affected so many things.