The Federal Government announced on Tuesday its plans to increase cocoa production to 500,000 metric tonnes by 2025, up from the 340,000 metric tonnes recorded in 2022.
Ambassador Nura Rimi, Permanent Secretary of the Federal Ministry of Industry, Trade, and Investments made this statement at the Pre-National Trade Dialogue Series meeting in Abuja.
The News Agency of Nigeria (NAN) reported that the theme of the program was “The State of Nigeria’s Global Trade Ecosystem: Bridging the Gaps for a Renewed Programme.”
Representing the permanent secretary, Mr. Kaura Irmiya, the Ministry’s Director of Commodities and Export, emphasized the critical role of cocoa in Nigeria’s economic development. He noted that Nigeria is the world’s sixth-largest cocoa producer.
He said, “Our cocoa exports have grown significantly, with a revenue increase of 50 per cent in 2022. We aim to increase cocoa production to 500,000 metric tonnes by 2025. Our investment partnerships have been instrumental in driving growth in various sectors of our economy,”
Nigeria’s investment landscape and challenges
He emphasized that strategic partnerships with international organizations such as the International Cocoa Organisation (ICCO) and the African Cocoa Fund have been crucial to this progress.
Rimi also highlighted that Nigeria’s investment landscape has significantly improved, attracting over $2 billion in Foreign Direct Investment (FDI) in 2023. Sectors such as manufacturing, agriculture, and energy have particularly benefited from this influx.
He commended government initiatives aimed at creating a business-friendly environment, including the establishment of free trade zones, the simplification of business registration processes, and the provision of incentives for investors.
Furthermore, he noted that challenges such as infrastructure deficits, regulatory bottlenecks, and corruption need to be addressed to fully realize Nigeria’s investment and collaboration potential. He also pointed out that security concerns in certain regions could deter investments and hinder economic growth.
He urged for continued efforts to attract more investments, promote trade, and foster partnerships within the country.
What you should know
In the first quarter of 2024, the value of Nigeria’s total cocoa exports rose by 279% on the back of increase in cocoa prices in the international market. According to the NBS, the value of Nigeria’s cocoa exports in Q1, 2024 reached N408.66 billion from N107.59 billion recorded in Q1, 2024 and N171.29 billion in the preceding quarter.
- The notable increase in cocoa exports during the reviewed quarter is attributed to the surge in cocoa prices between January and March 2023. During the first quarter, the average international price of cocoa rose by 130%, reaching $9,900 per tonne by the end of March.
- Nigeria reportedly produces around 270,000 tonnes of cocoa annually and and it will have to increase production by over 40% to achieve the target 500,000 tonnes.