The Minister of State for Industry, Trade, and Investment, Sen. John Uwan-Enoh, calls for the revival of the Cross River Cocoa Processing Factory in Ikom, emphasizing its potential to create 5,000 jobs and contribute approximately $6.8 million annually to Nigeria’s economy.
During an inspection visit to the factory, Uwan-Enoh stresses the need to shift from exporting raw cocoa to value-added processing. He highlights that despite Cross River’s significant cocoa production, the state lacks an operational processing facility.
The Cross River Cocoa Processing Factory, a N7 billion project initiated in 2017 under former Governor Ben Ayade, is expected to commence operations by early 2018. By December 2019, construction reaches 95% completion, with test runs scheduled for 2020, but the facility remains non-operational. In 2022, it is concessioned to AA Universal, yet it remains inactive.
Challenges Facing Cross River’s Cocoa Industry
Uwan-Enoh notes that cocoa farming is deeply embedded in the culture of communities in Ikom, Etung, and Boki, making the absence of a functional processing plant a major economic setback.
“All four cocoa estates established by Dr. Michael Okpara in the 1950s are in Etung, yet there is no processing facility. Farmers continue to export raw cocoa beans instead of benefiting from local value-added production,” he states.
Economic Benefits of Cocoa Processing
The minister warns that rising global cocoa prices, driven by currency fluctuations, will continue to affect farmers unless the industry shifts toward local processing.
“We must end the reliance on raw cocoa exports and establish efficient processing factories. With support from the Bank of Industry, we can transform cocoa into higher-value products,” he says.
Uwan-Enoh reveals that the government is exploring partnerships with AA Universal Bean and Co. Ltd to revive the factory. He also announces plans to convene a stakeholder session on cocoa processing and expresses readiness to revisit the factory once it becomes operational.
AA Universal’s Commitment to Revival
Chairman of AA Universal Ltd, Mr. Chris Agara, expresses confidence in the factory’s potential, stating that once fully functional, it could create 5,000 jobs and generate millions of dollars annually for the economy.
He outlines plans to improve cocoa traceability, eliminate child labor, and enhance profitability for farmers through better handling and technological advancements.
Meanwhile, cocoa farmer Mr. Oputa Ayuk voices trust in AA Universal’s leadership but stresses the importance of competitive pricing. He warns that if the company’s purchase price is not attractive, farmers may choose to sell their produce to exporters offering better deals.
As discussions progress, stakeholders remain hopeful that reviving the cocoa factory will stimulate local processing, create employment opportunities, and strengthen Nigeria’s position in the global cocoa market.
