The Federal Government has denied plans to ban the export of raw cocoa beans from Nigeria, instead emphasizing a push for value addition to enhance the country's earnings from the commodity. The clarification was made by the Minister of Agriculture and Food Security, Senator Abubakar Kyari, during a press briefing in Abuja on Monday.
Government's Stance on Cocoa Exports
Senator Kyari stated that the government is not considering a ban on raw cocoa exports, contrary to recent speculation in some quarters. He explained that the focus is on encouraging local processing of cocoa to add value before export, which would create jobs and increase revenue. According to the Minister, Nigeria currently exports about 70% of its cocoa in raw form, losing potential income from processing.
Value Addition Initiatives
The government is working with stakeholders to develop policies that incentivize local processing. These include tax breaks for cocoa processors, access to low-interest loans, and technical assistance. The aim is to increase the share of processed cocoa exports from the current 30% to at least 50% by 2028. Kyari noted that value addition could triple Nigeria's annual cocoa revenue, which stood at about $800 million in 2025.
Industry Reactions
The Cocoa Association of Nigeria (CAN) welcomed the clarification. CAN President, Mr. Mufutau Abolarinwa, said, "We are relieved that the government is not banning raw exports. However, we urge the government to implement the promised incentives swiftly to help processors compete globally." He added that many local processors struggle with high electricity costs and outdated equipment.
Economic Impact
Nigeria is the world's fourth-largest cocoa producer, after Ivory Coast, Ghana, and Indonesia. The country's cocoa sector employs over 300,000 farmers. By promoting value addition, the government aims to reduce poverty in rural cocoa-growing regions and diversify the economy away from oil. The Minister emphasized that the policy is part of a broader agricultural transformation agenda.
Next Steps
The Ministry of Agriculture plans to launch a Cocoa Value Chain Development Program later this year, which will include training for farmers on quality improvement and access to global markets. The government also intends to rehabilitate cocoa plantations and provide improved seedlings to boost yields.
