Summit to promote economic diversification holds next month
Managing Director of Nigerian Export-Import Bank (NEXIM), Abba Bello, has revealed that the cocoa industry is worth $200 billion yearly, out of which the entire West Africa’s producing region, made up of Côte d’Ivoire, Ghana, Cameron and Nigeria, accounts for about 70 -75 per cent of the global output, but yet earns only $10 billion.
Represented by General Manager/Head of Strategy and Corporate Communications, Tayo Omidiji, yesterday at a briefing to announce the International Cocoa and Chocolate Forum (ICCF) 2024 to be held in Abuja on the 9th and Lagos on the 11th of January, the NEXIM boss added that cocoa is a leading non-oil export commodity in Nigeria, noting that during the pre-oil era, the product was indeed a major driver of foreign exchange earnings for the country.
Bello regretted that Nigeria has lost its leading position in the production and export of cocoa over the years, now ranking as fourth producer behind Cote d’Ivoire, Ghana and Indonesia.
His words: “This problem can be attributed mainly to the aged plantations and lack of investment in the sector over the years. However, of more significance is the need for Nigeria to add value to its cocoa exports as a major step towards maximising the benefits of investments in the sector.
“It is instructive to note that the cocoa industry (including beans, cake and chocolate) is worth $200 billion yearly, out of which the entire West Africa’s producing region (made up of Côte d’Ivoire, Ghana, Cameron and Nigeria), which accounts for about 70 -75% of the global output, earns only $10 billionn. To further drive home the point, I would like to make reference to the report by the International Trade Centre (ITC) in 2021. According to the report, Nigeria produced 208 MT of cocoa beans in 2021, but generated a total income of $628 million. However, Germany, which did not produce cocoa, earned a whopping $57.3 billion from export of cocoa products.
“The foregoing underscores the need for all hands to be on deck amongst all stakeholders, including policy makers, researchers, the organised private sector and financial institutions to discuss strategies to crowd in investments and address all the other issues towards achieving the huge potential in the Nigerian cocoa industry.”
Bello said the upcoming summit aligns with the Renewed Hope Agenda of the President Bola Tinubu administration to promote economic diversification, address scarcity of foreign exchange and enhance job creation nationwide.
“The Nigerian Export-Import Bank, being the Export Development Bank of Nigeria, is also partnering in organising this conference for the same reason. This is in keeping with our mandate of developing the external sector of the Nigerian economy and facilitating export trade,” he added.
Speaking on behalf of the organisers, Sola Muhammad, explained that Lagos State Governor, Babajide Sanwo-Olu, is to flag off the Lagos leg of the event, while Minister of Finance and Coordinating Minister of the Economy, Wale Edun, would open the Abuja’s.
He said those expected at the conference include critical stakeholders like the Minister of Agriculture, cocoa farmers, exporters, regulators, researchers and policy makers.
[Guardian]