Nigeria’s cocoa production has drastically decreased to 6% of global output, trailing competitors. A proposed National Cocoa Management Board (NCMB) aims to revitalize the industry by enhancing farmer support, ensuring price stability, and improving domestic processing. However, challenges, including new regulations and competition from other countries, persist, requiring strategic and comprehensive approaches to succeed.
Once a powerhouse in cocoa production, Nigeria now only contributes approximately 6 percent of the world’s cocoa output. This dramatic decline, which positioned Nigeria behind West African neighbors such as Côte d’Ivoire and Ghana, stems from misguided investments following the oil boom in the 1970s. A new bill proposing the National Cocoa Management Board (NCMB) could potentially rectify this trend, offering fresh hope for revitalizing the cocoa industry and improving livelihoods across the region.
Cocoa was historically a major export for Nigeria, accounting for almost half of national exports from the 1940s to the 1970s, thanks to supportive regional marketing boards. These boards, particularly the Western Nigeria Cocoa Marketing Board, provided essential services to farmers, from research and price stability to broader agricultural support. However, the centralization and bureaucratic issues under military governance crippled the sector, leading to delayed payments and unchecked diseases impacting production.
The decline truly accelerated after 1986 when Nigeria dissolved its national cocoa board, leading to a liberalized market that failed to protect farmers. Now, production has fallen to between 200,000 and 300,000 metric tonnes each year, starkly overshadowed by Ghana’s 700,000 and Côte d’Ivoire’s 1.8 million tonnes. The proposed NCMB aims to bring essential support back to producers, focusing on coordination, accessible credit, compliance with quality standards, and fostering both domestic processing and youth engagement.
One of the key goals of the NCMB is to stabilize prices and ensure that Nigerian cocoa can compete globally. Currently, local production can generate only about $750 per tonne of raw beans, a far cry from the $4,000 per tonne that the European market pays for processed goods. Enhancing value addition and developing a strong local processing sector is seen as vital to extract more economic value from cocoa, moving Nigeria beyond just exporting raw beans.
However, implementing the NCMB is fraught with challenges, particularly from evolving global market demands. New regulations, such as the European Union Deforestation Regulation (EUDR), require proof of sustainable sourcing for cocoa, potentially presenting serious barriers for Nigeria’s smallholder farmers. Lacking the capital and infrastructure necessary for compliance, these farmers might find themselves excluded from the market.
Nigeria’s competitors like Ecuador and Brazil are pushing forward with strategies that bolster their positions in premium markets, often investing heavily in both processing and certification systems. In contrast, should Nigeria continue to center its focus on exporting unprocessed beans, it risks further economic decline and lost opportunities for job creation.
Learning from neighbors Ghana and Côte d’Ivoire, Nigeria’s NCMB could benefit from adopting successful elements from their boards while being wary of their pitfalls, such as bureaucratic inefficiencies and ineffective price controls that often disadvantage farmers during price surges. Striking a balance between state oversight and private sector involvement with genuine farmer representation might be the right approach.
For impactful change, the NCMB should provide flexible price protections for farmers that align with international trends, fostering an agricultural ecosystem that addresses fundamental needs such as quality inputs and improved farming practices. Partnerships with research institutions and targeted investment in community resources will be critical for success.
Furthermore, the NCMB must prioritize aligning Nigeria’s cocoa sector with international compliance standards while integrating technology into its operations. Digital traceability and AI-based credits could enhance overall efficiency in the supply chain. To prevent a repeat of past issues, rigorous audits and direct accountability are essential to maintain focus on value chain development.
The formation of the NCMB marks a significant step forward, aiming to address years of neglect. However, for the cocoa economy in Nigeria to flourish, it must go beyond just establishing a board; it requires a holistic ecosystem—supporting infrastructure, funding, and robust oversight—is paramount. The time to act is now.
In conclusion, while the establishment of the National Cocoa Management Board represents a promising opportunity for Nigeria’s cocoa industry, significant challenges abound. Learning from the past and implementing a comprehensive strategy that includes regulatory compliance, technological integration, and flexible pricing could lead the sector into a new and sustainable era. The road ahead will require coordinated efforts across infrastructure, funding, and governance to truly revitalize Nigeria’s cocoa output and secure a prosperous future for its farmers.
Original Source: businessday.ng
