The Cocoa Association of Nigeria (CAN) has raised the alarm over the steady decline of Nigeria’s cocoa sector, attributing the crisis to excessive taxation, inadequate funding, and poor infrastructure. In an exclusive interview with our correspondent, CAN President, Mufutau Abolarinwa, warned that the once-thriving cocoa processing industry is on the brink of collapse unless the Federal Government takes immediate and coordinated action.
Abolarinwa expressed grave concern over the dwindling number of functional cocoa processing firms, blaming the situation on soaring production costs and an unfriendly business environment. “We had a high number of cocoa processing companies in Nigeria in the past. Most of them are now moribund. They cannot compete or function well because the cost of doing business has become unbearable,” he said.
The CAN president explained that while the Federal Government has shown renewed interest in local cocoa processing, especially chocolate manufacturing, actual support for the sector remains insufficient. He cited Ondo State’s chocolate-making factory and a few other small-scale processors as examples of potential that could thrive with the right government backing.
At the heart of the crisis is the high cost of cocoa production. According to Abolarinwa, farmers and processors alike struggle with the price of inputs, chemicals, and energy. “The cost of producing cocoa is too exorbitant due to power and other logistics. Farmers don’t have the resources to invest in inputs, and processors are bleeding financially,” he stated.
Abolarinwa also lamented the burdensome logistics and regulatory hurdles faced by cocoa transporters and exporters. Moving cocoa from key producing regions like Cross River to the Lagos port is fraught with multiple taxation layers imposed by federal, state, and local government agencies.
“For a processor to move cocoa from Ikom to Lagos, it is so expensive. There are numerous agencies and checkpoints that demand payments. Even within Lagos, touts extract bribes before containers can access the ports,” he noted.
Highlighting the regulatory chaos, Abolarinwa decried the presence of overlapping government agencies that levy charges without clearly defined responsibilities. “We have the Nigerian Agricultural Quarantine Service, Federal Produce Inspection Service, and even NAFDAC trying to collect fees on cocoa exports. What is NAFDAC’s role in cocoa? These duplications only inflate our costs,” he added.
He called for a consolidation of these agencies and a harmonised tax framework to streamline operations in the cocoa value chain. “A serious government must merge these agencies and simplify the process. Otherwise, cocoa exporters will continue to divert their trade to neighbouring countries like Ghana, Togo, and Cameroon,” he warned.
Amid the challenges, CAN has expressed cautious optimism about the Federal Government’s plan to establish the National Cocoa Management Board (NCMB), which is currently awaiting Senate ratification. The board is expected to coordinate development strategies, streamline regulations, and improve funding access for stakeholders.
Abolarinwa, however, emphasised that implementation would be key. “Forming the board is not the issue; implementation is. Until it is structured to directly benefit cocoa farmers and processors, it will be another paper tiger,” he cautioned.
He also urged the Federal Ministry of Agriculture and the Federal Ministry of Industry, Trade and Investment to play more active roles in the sector’s revitalisation, including proper funding of the Cocoa Research Institute of Nigeria (CRIN).
In support of CAN’s call, the Cocoa Farmers Association of Nigeria, led by Adeola Adegoke, advocated for the NCMB to focus strictly on regulation and sectoral development, not on trading. “We want a board that centralises regulation and protects our interest, not one distracted by profit-making,” Adegoke said.
Both associations agree that reviving Nigeria’s cocoa industry is crucial to diversifying the economy, boosting non-oil exports, and creating rural jobs.
As global demand for cocoa and chocolate products continues to rise, Nigeria is at a critical juncture. Once the world’s second-largest cocoa producer, the country now lags behind nations like Côte d’Ivoire and Ghana. With effective policy implementation, harmonised taxation, and sector-specific investment, stakeholders believe the nation can reclaim its lost glory.
For now, the ball is in the government’s court to back its promises with meaningful action.