The Federal Government, in partnership with the Cocoa Farmers Association of Nigeria (CFAN), has commenced moves to attract an extra $400 on the cost of every tonne of cocoa exported from Nigeria.
It was learned that Nigeria exports about 340,000 tonnes of cocoa annually, meaning that the country is to earn an additional $136m outside the actual cost of the commodity once it perfects the process required to achieve this.
Speaking at the inauguration of the National Cocoa Management Committee on Tuesday, the Minister of Agriculture and Rural Development, Abubakar Mahmood, said officials of his ministry recently visited Ghana to study the implementation of Living Income Differential concerning cocoa export.
He explained that Ghana and Cote d’Ivoire introduced the Living Income Differential as a premium on their cocoa and a tool to complement the cocoa prices in the international market.
He added that the Living Income Differential was a premium on cocoa implemented by Ghana and Cote d’Ivoire to supplement cocoa pricing on the world market.
Mahmood said, “The purpose of this is to increase the share benefits received by cocoa farmers in these countries. In order to work out modalities for Nigerian cocoa farmers to start benefitting from this initiative like their counterparts in Ghana and Cote d’ Ivoire, this committee is being set up.”
He stated that one of the committee’s first objectives was to write an urgent charter for the NCMC’s activities so that an executive law may be sent to the National Assembly for approval.
“This is to meet the demand of joining the Ghana/Cote d’Ivoire initiative to deliver Living Income Differential of $400/tonne, which will in turn improve the livelihood of our smallholder cocoa farmers across the country,” the minister stated.
