West Africa dominates global cocoa production

The Managing Director of the Nigerian Export-Import Bank (NEXIM), Abba Bello, has disclosed that the entire West African region, comprising Côte d’Ivoire, Ghana, Cameroon, and Nigeria, contributes 70-75% to the global cocoa output, valued at a staggering $200 billion annually.

However, despite this dominance, the region earns a mere $10 billion, reflecting a mere 5% of the industry’s total revenue.

Bello, represented by Tayo Omidiji, General Manager/Head of Strategy and Corporate Communications, conveyed this disconcerting information during a briefing on the upcoming International Cocoa and Chocolate Forum (ICCF) 2024.

Nigeria, once a leading force in cocoa production, has slipped to the fourth position behind Côte d’Ivoire, Ghana, and Indonesia.

The NEXIM boss attributed Nigeria’s decline to aging plantations and a historical lack of investment in the cocoa sector.

He emphasized the urgent need for Nigeria to add value to its cocoa exports, pointing out that during the pre-oil era, cocoa was a crucial driver of the country’s foreign exchange earnings.

Highlighting a stark comparison, Bello referred to a 2021 report by the International Trade Centre (ITC).

Despite producing 208 metric tons of cocoa beans, Nigeria only generated $628 million in income. In contrast, Germany, a non-cocoa producer, earned a staggering $57.3 billion from cocoa product exports.

The dire situation has prompted the announcement of the ICCF 2024, scheduled for January 9th in Abuja and January 11th in Lagos.

The summit aims to gather stakeholders, including policymakers, researchers, the private sector, and financial institutions, to discuss strategies for attracting investments and overcoming challenges in the Nigerian cocoa industry.

Aligning with the Renewed Hope Agenda of the President Bola Tinubu administration, the summit seeks to promote economic diversification, address foreign exchange scarcity, and foster nationwide job creation.

Lagos State Governor, Babajide Sanwo-Olu, is set to inaugurate the Lagos leg, while Minister of Finance and Coordinating Minister of the Economy, Wale Edun, will open the Abuja session.

Attendees include key figures in agriculture, cocoa farmers, exporters, regulators, researchers, and policymakers.

The urgency to revitalize the cocoa sector resonates as West Africa grapples with the paradox of being a major producer but earning only a fraction of the industry’s substantial revenue.