Expert Calls For Action To Protect Nigerian Cocoa From EU Ban

As the European Union’s Deforestation Regulation (EUDR) deadline approaches, David Ohidah, a research analyst at Vestance Limited, has warned that Nigeria’s cocoa industry faces a significant threat to its exports and revenue if urgent action is not taken to comply with the new regulations.

Speaking on the newly released Vestance report titled “Analysing the EUDR and Nigeria’s Cocoa Industry Future”, Ohidah says, “The EUDR aims to prevent deforestation and forest degradation, but its implementation could have devastating consequences for Nigeria’s cocoa farmers and exporters if we fail to adapt. With the EU as our major market, accounting for over 55% of our cocoa exports, it is crucial that we take immediate action to ensure our industry meets the required standards.”

Ohidah notes that the EUDR requires companies to ensure that their products are deforestation-free, produced in accordance with relevant legislation, and covered by a due diligence statement.

To mitigate this risk, Ohidah recommends that the Nigerian government and stakeholders prioritise sustainable farming practices, such as agroforestry, which can help reduce deforestation and forest degradation. He also suggests developing a comprehensive national database of cocoa producers and mapping cocoa farms to enhance traceability throughout the supply chain.

There is a need for proactive engagement with the EU to conduct a comprehensive preparedness assessment, as was done for Ghana, Côte d’Ivoire, and Cameroon. “This assessment would help identify strengths and gaps in the present system of the Nigerian cocoa industry and guide stakeholders in aligning the industry with EUDR standards,” Ohidah said.

The National Cocoa Management Committee (NCMC) has already called for a state of emergency in the sector, emphasising the need to ensure the sustainability of Nigeria’s cocoa industry in the face of these regulations. Ohidah agrees, saying, “We must act now to avoid losing our market share and revenue. The current high cocoa prices present a potential windfall for Nigeria if we can meet regulatory requirements.”

Ohidah also suggests exploring alternative markets, such as Indonesia, which has minimal cocoa re-exports to the EU. He also recommends prioritising value addition through processing cocoa beans into finished cocoa products for domestic consumption and export to non-EU markets.

Also speaking on the issue, Rildwan Bello, the programme manager of Vestance Limited urges the Nigerian government and stakeholders to take proactive measures to support the cocoa industry and ensure its sustainability. “We owe it to ourselves, our farmers, and our economy to act now and secure our position in the global cocoa market,” Bello said.