By Francis Ogwo
The Cocoa Exporters Association of Nigeria has lamented that 100,000 tons of cocoa are trapped at Nigerian ports as a result of CBN documentation approval that forces exporters to ensure that sales from export are repatriated to Nigeria.
The President of the Cocoa Exporters Association of Nigeria, Pius Ayodele, had told Bloomberg in a recent report made the disclosure while adding that the approval process could take as much as 40 days from CBN.
According to an industry stakeholder, CBN had paused exports for over 2 weeks to ensure exporters complied with the new rules,
“We have five containers at the ports, some of which have left the factory for well over two months now,” he said.
Another trade expert, Bamidele Ayemibo, who is also the Lead Consultant at 3T Impex Trade Academy, had said, “The central bank is just enforcing what has always been in the books, which is don’t export without a declaration. People are exporting without a declaration.”
However, exporters said they are not against the rule, but against the bureaucratic nature of the ruling, as shipping lines can’t enforce the law and are better operated through inspection agents.
You would recollect that in April this year the Nigerian Export Promotion Council said, “Agricultural exports, especially cocoa, are predicted to suffer. A fall in exports of over US$100 million in the cocoa sector in Nigeria is predicted, as a result of declining prices due to falling demand in Europe.”
In October, the Central Bank of Nigeria (CBN) commenced the distribution of cash and inputs to cocoa farmers under the Anchors Borrowers Programme. Cash and inputs worth N770million were distributed to 221 cocoa farmers in 10 cocoa producing states in Nigeria.
Nigeria currently ranks as the fourth largest exporter of cocoa beans globally, behind Côte d’Ivoire, Ghana, and Indonesia, according to the National Export Promotion Council. Cocoa exports in Nigeria is projected to grow annually by 4% in the coming years.
The top export destinations of Cocoa beans, whole or broken, raw or roasted. from Nigeria in 2019 are Netherlands with a share of 43% (109 million US$), Germany with a share of 18.3% (45 million US$), and Indonesia with a share of 11.9% (29 million US$)
