Business

August 19, 2010

Nigeria cocoa faces export ban

By Daniel Gumm
NIGERIA may be on the verge of losing out in the cocoa export business at the end of the year for failing to to comply with the European Union’s standard requirement of chemicals used in the production of the commodity.

COCOA

Indeed, the nation stands the risk of its cocoa product being rejected at the international market due to the use of substandard chemicals in its cocoa plantations.

The International Cocoa Organisation — the United Nation’s regulatory body for the commodity has said that Nigeria’s cocoa export has been found to be of low standaed due to the discovery of of substandard pesticides used in its production.

Akin Gbadamosi, National Chairman, Cocoa Association of Nigeria, raised the apprehension at the one-day Nigerian Export Promotion Council (NEPC’s) cocoa export development interactive session in Lagos, recently, adding however, that the Federal Government order the nation’s security agencies, to take urgent steps to stop the continued importatation of different substandard chemicals into the country, as a way of protecting the lives of the people, especially the farmers, who risk being out of jobs if the EU ban takes effect.

He pointed out that the influx of chemicals used in the production of cocoa in the country may lead to Nigeria being rejected at the international market, saying that Nigeria was yet to comply with the international requirement standard.

The CAN boss said that most other countries in Africa such as Cameroun, Ghana, Cote d’Ivoire, and Togo were already 90 per cent compliance, but lamented that Nigeria was yet to commence the implementtation process due to government apathy at stopping the importation of substandard chemicals.

On the effect of EU’s ban, Gbadamosi said that the implication would affect adversely the growth of the nation’s economy, stressing that agriculture contributes 41.48 per cent to the national Gross Domestic Product (GDP), of which cocoa contributes 27 per cent.

He noted that his association was working with the Police, SSS, Customs and NAFDAC to sensitise farmers and fight fake chemicals in the market.

He said the Cocoa Association of Nigeria took over the job of the former cocoa board when it was dissolved, except pricing.

“When cocoa was banned in 1988, the association led a delegation to London to sign an agreement with cocoa producers in Europe to produce quality cocoa for the international market  “with the permission of the federal ministry of commerce,” he said, while also alleging  that “today, government is frustrating our efforts at producing quality cocoa.”

He however, called on the federal government to restore the cocoa board and provide grants for cocoa farmers across the nation.

President of Cocoa Processor Association of Nigeria (COPAN), Mr  Akin Olusuyi, said cocoa producers need grants from the federal government.

He argued that Nigeria is the only cocoa producing country where there are no direct incentives from  government to the manufacturers and processors of cocoa