Nigeria Loses $2 Billion Annually Due to Underutilized Cocoa Processing Capacity
The Federal Government highlights a staggering $2 billion loss each year from inadequate cocoa processing capabilities, urging for increased local value addition. Minister of Agriculture Abubakar Kyari emphasizes the need for investment in processing to enhance Nigeria's position as a cocoa exporter.
The Abuja Times
The Nigerian government has revealed that the country is losing approximately $2 billion each year due to a significant gap in cocoa value addition, stemming from an underutilized processing capacity. This statement was made by the Minister of Agriculture and Food Security, Abubakar Kyari, during the Africa Cocoa and Coffee Conference held in Lagos. Kyari, represented by Mr. Ajayi Olutobaba, Deputy Director of Tree Crops at the Federal Ministry of Agriculture and Food Security, noted that while Nigeria has an installed cocoa processing capacity of around 2,000 tonnes annually, only about 30 percent of this capacity is currently being utilized.
Kyari outlined the government's strategy to transition Nigeria from merely producing cocoa to actively processing it into products such as cocoa butter, liquor, powder, and chocolate. He asserted that the focus should be on value addition rather than just increasing production volume. “Roughly $2 billion in value addition slips away every year. It is not a shortage of resources; it is an opportunity waiting for the right investors,” he said.
The Minister emphasized the importance of creating an environment conducive for investment in cocoa processing facilities. He affirmed that the government is committed to positioning Nigeria as a reliable cocoa exporter, thereby ensuring that local farmers benefit more from their produce. “For cocoa and coffee, it comes down to one idea: value addition, not just volume. Our goal is to add value, not export ban, and we’ll make it easy for investors to build the factories,” he added.
With Nigeria's cocoa production stagnating at about 300 kilograms per hectare, despite the availability of improved seedlings, the call for enhanced processing capabilities is more urgent than ever. The Federal Government's initiative aims not only to boost local processing but also to increase the competitiveness of Nigerian cocoa in the global market, ultimately benefiting farmers and the economy.
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