€523m Export: FG Calls For Suspension Of EU Deforestation Regulation

The Federal Government has called for the suspension of the European Union’s Deforestation Regulation (EUDR), citing concerns over its impact on Nigeria’s agricultural exports and economy.

The EU Deforestation Regulation, which came into effect on June 29, 2023 and set for full implementation by December 2024, mandates that products linked to deforestation or forest degradation after December 31, 2020, will be banned from the EU market.

In Nigeria, commodities such as timber, cocoa, coffee, soy, palm oil, and cattle, as well as related products like chocolate, leather, and furniture will be severely affected by the regulation as companies exporting these products to the EU must meet strict due requirements to prove that their goods are deforestation-free.
During the inauguration of the National Task Force (NTF) on EUDR in Abuja yesterday, Minister of Agriculture and Food Security, Abubakar Kyari expressed concerns about the regulation’s impact on Nigeria’s non-oil exports which amount to €523 million annually.

The minister highlighted the severe consequences of non-compliance, including a potential loss of livelihoods for millions of Nigerian farmers and further depreciation of the Naira.

While acknowledging the urgency of the situation, Kyari stressed the need for collaboration between government bodies and private sector stakeholders.

RELATED

Profitable Consultancy Business Ideas

2 hours ago

Experts Back CBN’s Plan To Revive eNaira, Urge Better Implementation

2 hours ago

The National Task Force is chaired by the minister, including representatives from various government agencies, the private sector, and international organisations, the Nigerian Export Promotion Council, the International Cocoa Diplomacy, and the European Union.

Kyari charged the task force with developing a national strategy to ensure compliance with the EUDR, including forest mapping and the creation of a national traceability system for agricultural value chains.

The task force is expected to engage with the EU on the possibility of extending the EUDR deadline while exploring alternative markets for Nigeria’s agricultural products, including China, Russia, and Belarus.

He said, “Recent calls by the German Government on the back of other Latin American nations and indeed, the USA and India that the regulation be suspended for its impractical requirements and drastic bureaucratic burden on companies and the call by the Director General of the World Trade Organization (WTO) for EU to rethink deforested goods ban and its impact on global trade is a pointer to the risks and burdens of the impending sanctions.

The International Cocoa Organization (ICCO) comprising of all cocoa producing nations at the recently concluded meeting unequivocally called for a two-year postponement of the EUDR deadline. I therefore use this opportunity to join the call for the suspension of the EUDR”.

The minister also reiterated Nigeria’s commiment to sustainabble agriculture but emphasized the need for a fair and balanced approach.