Nigeria To Stop Exporting Raw Cocoa Beans, Keep Value At Home

The federal government has unveiled plans to reduce the export of raw cocoa beans and expand local processing as part of a broader industrial strategy aimed at retaining more value within the Nigerian economy.

The initiative forms part of the implementation of the Nigeria Industrial Policy (NIP) 2025, which the Ministry of Industry says is beginning to shift focus from the export of primary commodities to domestic value addition and manufacturing.

For decades, Nigeria has remained one of Africa’s major cocoa producers, yet much of its output has been exported in raw form, allowing foreign manufacturers to capture most of the value through processing into chocolate, confectionery and other finished products.

The government said its new approach seeks to reverse that trend by encouraging investments in domestic processing facilities and creating stronger links between agricultural production and manufacturing.

According to a 90-day progress report released on Friday in Abuja by the office of the Minister of State for Industry, Senator John Owan Enoh, preparations are underway for a national Cocoa Value Chain Summit scheduled for July 2026, with the objective of strengthening local cocoa processing and building globally competitive Nigerian brands.

The report said the Bank of Industry (BOI) would serve as the headline partner for the summit, which is expected to bring together stakeholders across the cocoa value chain.

According to the report, the guiding principle is that more of the economic value generated from cocoa should remain within Nigeria rather than being transferred abroad.

Industry analysts have long argued that countries that export raw agricultural commodities earn significantly less than those that process them into finished products. Cocoa-producing nations such as Ghana and Côte d’Ivoire have in recent years intensified efforts to increase local processing in order to capture more revenue, create jobs and reduce dependence on commodity exports.

The report described cocoa as one of several priority sectors being targeted under the industrial policy.

Beyond cocoa, the government said it had also begun efforts to revive Nigeria’s textile industry through the National Cotton, Textile and Garment Industrial Transformation Programme.

The initiative seeks to reconnect cotton farmers, textile mills and garment manufacturers after decades of decline that weakened domestic production and increased dependence on imported fabrics and clothing.

The ministry disclosed that a revised policy framework for the cotton, textile and garment sector would be introduced soon, while a dedicated coordinating institution is being established to oversee implementation.

In the sugar industry, the report said recent engagements between the government and major operators had resulted in renewed investment commitments.

According to the ministry, Dangote Sugar Refinery plans to increase annual production capacity to about 600,000 tonnes by 2030, while Sunti Golden Sugar Estates is targeting around 300,000 tonnes. LASUCO was also identified as having the potential to become one of the country’s largest integrated sugar facilities with projected output of about 210,000 tonnes.

The report also highlighted government efforts to develop an electric vehicle manufacturing ecosystem in Nigeria.

It stated that an agreement had been signed with the Asia Economic Development Committee to support the establishment of electric vehicle assembly plants and charging infrastructure, alongside technology transfer arrangements intended to strengthen local manufacturing capabilities.

The ministry said trade policy was also being deployed to support industrialisation.

It cited the extension of the ban on raw shea nut exports until February 2027 as a measure designed to encourage domestic processing of shea butter, oils and cosmetics.

According to the report, the shea value chain employs large numbers of women, accounting for an estimated 90 per cent of workers in the sector.

The government further disclosed that 131 companies producing 220 products recently received African Quality Marks, a certification expected to facilitate greater access for Nigerian products to markets under the African Continental Free Trade Area (AfCFTA).

The report also pointed to efforts to improve financing and industrial capacity.

It said more than $380 million had been mobilised through various programmes, including a $369 million facility from the African Development Bank for the MSME Industrial Clusters Programme and a $12 million entrepreneurship centre supported by KOICA, UNDP and SMEDAN.

In addition, a proposed N350 billion MSME Development Fund is being pursued through a partnership involving FSL Capital, Fidelity Bank and IICL.

The ministry reported that 620 Nigerians received technical training during the period. These included 400 youths trained in mechatronics across Yobe, Lagos, Kano and Zamfara states, as well as 220 artisans trained under the Industrial Training Fund’s Skill Up Artisan programme.

Work is also ongoing to provide dedicated gas supply to the Idu Industrial Park in Abuja, a move the government believes will help address one of the major constraints facing manufacturers: inadequate and costly energy supply.

Speaking on the progress made so far, Enoh said industrial policy should be judged by tangible outcomes rather than policy announcements.

“Industrial policy earns its keep in the present tense. For ninety days we set out to prove that the Nigeria Industrial Policy would be measured by what it builds, not by what it announces,” he said.

The minister said cocoa, textiles, sugar and electric vehicles had moved beyond policy proposals and were now being translated into projects, contracts and employment opportunities.

The report stated that the next phase of implementation would focus on scaling industrial cluster programmes, launching the revised textile policy, completing the Idu power initiative and strengthening monitoring mechanisms across all strategic objectives of the industrial policy.

Success of the strategy will ultimately depend on the government’s ability to sustain policy consistency, improve infrastructure and create an enabling environment capable of attracting long-term investment into manufacturing and agro-processing industries.