Nigeria projects over $300bn for cocoa development

To achieve sustainable growth in the cocoa sector, the federal government and the private sector are projecting investments of over 300 billion US dollars into the sector over ten years.

The action plan, approved by the Federal Executive Council (FEC) in November last year, aims to reposition the cocoa sector as a highly competitive, dynamic, and profitable industry.

During the inauguration of the Technical Implementation Committee for the 10-Year National Cocoa Plan in Abuja, the Minister of Trade and Investment, Dr Jumoke Oduwole, explained that the plan aligns with the Renewed Hope Agenda, which seeks to reduce unemployment and achieve the broader vision of a $1 trillion economy by 2030.

The minister, represented by the Permanent Secretary of the Ministry, Ambassador Nura Abba Rimi, noted that Nigeria was the world’s leading cocoa producer in the 1970s but expressed worry about low productivity due to insufficient investment in the value chain, poor infrastructure, and a lack of coherent policy direction.

He urged the committee to ensure the diligent implementation of the National Cocoa Plan.

“As members of the technical committee, consider yourselves fortunate to have been chosen for this assignment. You need to justify the confidence placed in you by working as a team to promote industrialization in Nigeria. Your nomination is a call to national service.”

Hajiya Hajara Usman, Head of the Commodities and Export Department of the Ministry of Trade and Investment, outlined how the ministry plans to achieve the over three hundred billion dollars investment in the Cocoa Plan by 2032.

“For the 10-Year National Cocoa Plan, it is expected that the federal government will contribute 27%, the cocoa-producing states will contribute 13%, local governments will provide 5%, and the private sector will contribute 30%. Additionally, the donor sector and the global industry will account for 25%.”

Dr Victor Iyama, Chairman of the Board of Trustees of the Cocoa Association of Nigeria, stated that these initiatives would boost cocoa production, improve quality, generate additional income for farmers, and contribute to overall economic growth.

“Many people are now turning to cocoa farming, and with the establishment of this committee, there will be a more serious effort to drive cocoa production.”

The Cocoa Plan was developed through an inclusive process of collaboration with key stakeholders, including the Federal Ministry of Agriculture and Food Security, the Cocoa Association of Nigeria, the International Cocoa Organization, and Afrieximbank, to address the interests of all actors in the value chain, from the farm to the downstream sector.

The historical significance of cocoa in Nigeria dates back to the early 20th century, when it was a major source of revenue for the economy. During the 1950s and 1960s, the commodity was the backbone of the Western Region’s economy, contributing significantly to national development. However, the discovery of crude oil in commercial quantities led to the decline of cocoa production as the government shifted focus to the more lucrative petroleum sector.

One of the biggest challenges facing cocoa production in Nigeria is the aging population of farmers. Many young people are reluctant to engage in cocoa farming due to the labor-intensive nature of the work, lack of modern tools, and limited access to credit facilities.

To rejuvenate cocoa production, the federal government said it will support farmers to boost cocoa and plantain production in the agriculture value chain.

The federal government is also targeting the production of cocoa to 750,000 metric tons by the year 2032.

Revitalising cocoa production in Nigeria requires a collective effort from all stakeholders, including the government, private sector, farmers, and research institutions. By prioritising policies that enhance productivity, modernising farming techniques, and promoting sustainable practices, Nigeria can reclaim its position as a leading cocoa producer.