Massive loss as opportunities in cocoa industry remain untapped

Nigeria’s cocoa industry faces significant challenges, missing out on over $2 billion annually due to underutilized value chain opportunities and a lack of cocoa culture appreciation. With processing capacity at only 30%, stakeholders stress the need for creative funding, industry restructuring, and local value addition to unlock its full potential. Recommendations include enhanced funding for research, technology adoption, education, and policies promoting local cocoa processing to empower local players and drive inclusive development. Seizing these opportunities could transform Nigeria into a vibrant cocoa hub. Source: The Guardian

Our Review
Nigeria’s cocoa industry faces significant challenges, leading to an annual loss of over $2 billion due to untapped value chain opportunities and a lack of cocoa culture appreciation. Despite having a processing capacity for 200,000 metric tonnes, the country operates at just 30%, hampered by a poorly structured industry and insufficient investment. The recent International Cocoa and Chocolate Forum highlighted these issues, emphasizing the need for creative funding and strategies to unlock cocoa’s full potential beyond mere commodity trade.
Stakeholders like HRM Oba Dokun Thompson, Dr. Patrick Adebola, and Mr. Abba Bello highlighted the dominance of global players in the cocoa sector, which poses challenges for local traders and farmers. To foster inclusive development, they proposed transitioning Nigeria from a cocoa producer to a consumer, promoting cocoa products in schools, and establishing a cocoa development fund in collaboration with the private sector.
CRIN (Cocoa Research Institute of Nigeria) requires enhanced funding for research and development, and technological innovation, education, and training are vital to improving productivity and quality standards. Policies promoting local value addition and discouraging raw cocoa exports are essential to safeguarding the industry and empowering local players. Nigeria must seize its cocoa potential by transforming challenges into opportunities through strategic reforms and investments.