NAFDACs Proposed Export Regulation Will Harm Nigerias Cocoa Industry.

The Cocoa Processors Association of Nigeria (COPAN) has raised serious concerns over the proposed 2024 export regulations by the National Agency for Food and Drug Administration and Control (NAFDAC). The association describes the federal government’s plan as a duplication of efforts that will hinder the already struggling non-oil export sector, particularly the cocoa processing industry. At a press briefing in Lagos themed “NAFDAC’s New Export Regulations 2024 Would Kill Our Business with Multiple Taxes – Save Our Business and Nigeria’s Non-Oil Export,” COPAN Chairman, Felix Oladunjoye, highlighted the dire situation. He noted that Nigeria, despite having the capacity to process over 250,000 tonnes of cocoa annually, currently processes less than 20,000 tonnes. “Nigerian factories can process all the cocoa produced in Nigeria, but only 20,000 tonnes are currently being processed. We need to declare a state of emergency on the nation’s cocoa industry. We are losing numerous employment opportunities while many investors are looking elsewhere due to government policies frustrating businesses,” Oladunjoye stated.

Oladunjoye pointed out that of the 15 cocoa factories established in 1986, only four are still operational, functioning at less than 30% of their installed capacity. He warned that NAFDAC cannot manage the millions of export transactions currently occurring in Nigeria’s export sector. “Cocoa processors already face numerous challenges, and NAFDAC’s additional burden will further stifle the ailing cocoa processing industry. Non-oil exporters have invested billions to establish cocoa processing outfits to add value to our cocoa, which is currently being exported raw. An average processing factory today requires at least N60 billion to set up, covering equipment, land, and machinery,” Oladunjoye lamented. He emphasized that 80% of multinational companies that invested in the sector have shut down due to the harsh business environment, and further pressure on the cocoa industry could spell disaster for Nigeria’s export market.

“We are talking about over N500 billion in investments tied up in machinery and equipment wasting away, with the unemployment rate rising daily. We also face heavy multiple taxes from the government. Many multinationals have closed shop, but we, as Nigerians, have decided to take our destinies into our own hands. We are not just fighting for ourselves but for all exporters in the non-oil sectors. NAFDAC lacks the capacity to test millions of export transactions with only one laboratory in Lagos. It takes three months to get goods certified by NAFDAC, and they are not recognized in the cocoa certification process,” Oladunjoye stressed.