Nigeria Loses N100bn Yearly to Poor Cocoa Policy—Lawmaker

By Aduragbemi Omiyale

A lawmaker at the lower chamber of the National Assembly, Mr Ademorin Aliu Kuye, has lamented that Nigeria loses about N100 billion yearly to poor cocoa policy in the country.

To address this issue, the House of Representatives member has moved a motion to review of existing laws to help reposition the nation as the largest producer of cocoa in Africa.

While presenting the motion on Tuesday during plenary, he said the huge amount is lost due to the federal government’s non-commitment to find sustainable, executable solutions to problems bedevilling the sector.

He informed his colleagues that Nigeria was once a major player in cocoa production, being the second-largest producer in the world with 450,000 tons, and that the sale of cocoa was Nigeria’s major source of foreign exchange earnings in the 1950s and 1960s before the discovery of crude oil in commercial quantity in the 1970s.

But in the 1990s, the Nigerian cocoa market crashed, with production declining to 170,000 tons as a result of the Structural Adjustment Programme (SAP) of the International Monetary Fund (IMF) implemented by the government in the late 1980s, which included the dissolution of the Cocoa Marketing Board to liberalise cocoa marketing trade and allow improved cocoa output and pricing.

According to him, the National Cocoa Development Committee, established in December 1999 by the administration of Mr Olusegun Obasanjo was tasked to improve cocoa quality and increase production from 170,000 tons to 300,000 tons and 600,000 tons per annum in the short and long term respectively.

He expressed concerns that the unregulated and liberalized cocoa industry was depriving cocoa farmers of yearly revenues as they are unable to collect the Living Income Differential (LID) of $400 per tonne paid to cocoa farmers in other countries like Ghana and Cote d’Ivoire, apart from the cocoa floor prices that are paid by world cocoa buyers.

Mr Kuye also lamented that despite the availability of arable land and climate to sustain cocoa production in Nigeria, Nigeria has fallen down the line in the pecking order in Africa and the world respectively and despite the cyclical ambivalence of oil, the country’s major foreign exchange earner, the federal government has been unable to look into cocoa which is a potential growth sector that could serve as a buffer during periods of oil-induced recessions.

After moving his motion, the House, which was presided over by the Speaker, Mr Femi Gbajabiamila, passed a resolution to review the country’s cocoa production policy.

It also mandated its Committee on Agricultural Production and Services to begin the process of the review in liaison with the Federal Ministry of Agriculture and Rural Development and report back to the floor within four weeks.