FG advocates local cocoa processing to end raw bean export

President Bola Tinubu has announced a strategic shift in Nigeria's approach to cocoa production, declaring that the country must stop exporting raw cocoa beans and instead focus on processing the crop domestically to maximize its economic value. Speaking at the Cocoa Value Addition Summit 2026 in Abuja, the president was represented by the Minister of Agriculture and Food Security, Abubakar Kyari, who outlined plans to transform Nigeria into a hub for cocoa processing and manufacturing. This initiative aims to ensure that Nigeria captures a larger share of the profits generated by the global chocolate market rather than merely exporting unprocessed beans. Nigeria currently ranks among the world’s top cocoa producers, with over 300,000 farming households cultivating the crop on approximately 1.4 million hectares. During periods of high global demand, cocoa has contributed more than N3 trillion to the nation’s export earnings. However, according to President Tinubu, these earnings have been largely symbolic, as the majority of the value created through processing, branding, and manufacturing is retained abroad. He emphasized that Nigeria must now take control of the entire value chain, from harvesting to final product, to secure greater financial returns. At the summit, the minister highlighted ongoing efforts to bolster local processing capabilities, including the construction of a 70,000-metric-tonne cocoa processing facility in Sagamu, Ogun State. He noted that Nigeria’s annual cocoa grinding capacity has surpassed 120,000 metric tonnes, indicating progress toward achieving self-sufficiency in value-added production. These developments align with broader national goals to reduce reliance on raw material exports and promote domestic manufacturing. The Minister of State for Industry, John Owan Enoh, reiterated that the initiative supports Nigeria’s industrial policy, which prioritizes value creation over raw material exports. He stressed that the country can no longer afford to export unbranded goods while allowing foreign nations to reap the benefits of processing and branding. Enoh also revealed that Nigeria is collaborating with Ghana, Côte d’Ivoire, and Cameroon to form an African cocoa alliance. This coalition aims to enhance the continent’s collective influence in global cocoa markets by coordinating policies related to processing, value addition, and trade. Financial backing for the initiative has been pledged by the Bank of Industry (BOI). The managing director, Olasupo Olusi, confirmed that the bank has already allocated over N164 billion to more than 3,500 agro-processing and food businesses in 2025. Additionally, BOI recently secured a €60 million credit facility from the European Investment Bank to fund cocoa processing projects. Olusi outlined the bank’s commitment to supporting all stages of the value chain, from nursery operations and cooperatives to grinding plants, ingredient factories, packaging lines, and chocolate manufacturers. Representatives from other cocoa-producing nations, such as Ghana, have echoed similar sentiments. The Chief Executive of the Ghana Cocoa Board, Ransford Abbey, pointed out that despite producing between 75 and 77 percent of the world’s cocoa, Africa collectively earns less than 10 percent of the associated value. He urged African nations to collaborate more closely, emphasizing that they should process their own resources, protect their farmers, and engage in unified negotiations within the global cocoa market. This renewed emphasis on local processing follows growing recognition of the need to diversify Nigeria’s economy beyond raw material exports. As the country continues to invest in infrastructure and partnerships, the success of this strategy will depend on sustained collaboration among governments, private sector players, and international development partners. The upcoming months will likely see further announcements on how these initiatives will be implemented and scaled across the cocoa sector.