The Cocoa Farmers Association of Nigeria (CFAN) has expressed concerns about insufficient funding for the cocoa industry, urging President Bola Tinubu to honour his campaign promise to strengthen support for this vital agricultural sector. The request was made in a recent open letter signed by Adeola Adegoke, National President of CFAN and Director General of the Cocoa Roundtable Initiative (CORI). Adegoke emphasised cocoa’s importance as one of the nation’s most reliable foreign exchange and Government Revenue sources. He encouraged the president to focus on enhancing investments in the sector’s development and regulatory structures to ensure its future success.
He voiced worries regarding the ongoing difficulties encountered by the National Cocoa Management Committee (NCMC), which has suffered from inadequate funding and has struggled to meet its responsibilities for the last two years. Established in 2022, the NCMC managed quality assurance, contract disputes, child labour monitoring, and other vital industry elements. However, the committee’s limited resources have obstructed its initiatives, hampering its ability to regulate and protect the interests of Investors in this crucial market. He recognised that recent government reforms are encouraging advancements for the industry, even in light of previous challenges.
Nigeria’s cocoa exports rose by 304% in the first quarter of 2024.
Adegoke emphasised the need for increased financial backing for the industry to enhance these reforms and further secure and develop product production. He made a direct request to President Tinubu for additional financial support for the NCMC and urged him to endorse the National Task Force on the European Union Deforestation Regulation (EUDR), which protects the country’s cocoa industry investments, valued at about $1 billion. Furthermore, the CFAN’s letter underscored the industry’s significant achievements over the past year.
According to data from the National Bureau of Statistics (NBS), product exports increased by 304 percent during the first quarter of 2024. The data further reveals that its exports accounted for 42.4 percent of agricultural exports, totalling ₦1.04 trillion in this timeframe, increasing from ₦108.6 billion in 2023 to ₦438.7 billion at the beginning of 2024. The product prices have also settled, staying over ₦10 million per metric tonne, a change that has strengthened farmers’ incomes and supported economic advancement in the region that produces it.
A call was made for a stronger legal and financial system to be developed.
Therefore, Adegoke called on the Tinubu government to develop a stronger legal and financial structure for the NCMC, working alongside the National Assembly, to support the committee’s evolution into a specialised regulatory board. He contends that this board would play a crucial role in enhancing exports, raising quality standards, and expanding production capacity, serving the interests of farmers and the government. Alongside proposed regulatory improvements, CFAN suggested offering Subsidies for agricultural inputs, a step aimed at elevating Productivity and enhancing farmers’ income. Adegoke emphasised the importance of assisting smallholder farmers who encounter challenges that limit their productivity and earnings.
Such challenges encompass post-harvest quality concerns that affect market prices and regulatory difficulties associated with EUDR compliance, which will play a growing role in the country’s participation in the global market. In addition to tackling urgent financial issues, the letter stressed the necessity of reaching national product output targets. CFAN continues to support the vision to emerge as West Africa’s top producer by 2027, surpassing existing rivals in the region. Likewise, Adegoke cautioned that regulatory lapses could undermine the sector’s gains without adequate resources, especially given the recent price increase.
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On the other hand, responding to these challenges is essential for the federal government to secure the sector’s development. The government would strengthen the industry’s foundations by fortifying the NCMC with a clear legal status and ensuring it receives adequate funding. Federal authorities must also offer consistent support for subsidies, enabling farmers to access the resources they need to enhance productivity and adhere to international standards. The government would facilitate Economic Development within the product-producing states and contribute to a non-oil Export diversification strategy.