Nigeria's Cocoa Value Addition Accord Aims to Boost Industry

Nigeria produces over 300,000 tonnes of cocoa annually but processes only about 50,000 tonnes, leading to a significant loss in potential value. The Nigeria Cocoa Value Addition Accord, supported by the Bank of Industry and the European Investment Bank, aims to enhance cocoa processing and improve farmers' earnings.

This initiative seeks to connect farmers with reliable markets and processors, addressing the fragmentation in the cocoa value chain. The accord aligns with the Abuja Declaration, which provides regional direction for cocoa processing in producer countries.

The financing facility reserves at least 70% for cocoa and dairy, alongside technical assistance on climate and social standards. Historical shifts in Nigeria's agricultural focus, particularly the rise of petroleum, have led to neglected cocoa infrastructure and support systems.

The initiative reflects a convergence of interests, as Europe seeks legal and deforestation-free supply chains while Nigeria requires patient capital and rural employment to retain greater value domestically.