Nigeria’s earnings from the export of cocoa beans, its derivatives, and waste dwindled year-on-year as demand for Nigeria’s cocoa by trading partners waned.
The country earned N10.42 billion from the export of fermented cocoa beans, superior quality cocoa beans, cocoa shells, husk, beans, and waste in the fourth quarter of 2020, according to data obtained from the National Bureau of Statistics.
However, in the corresponding period in 2019, the country earned N27.78 billion from cocoa products, including natural cocoa butter, cocoa powder, and chocolate, representing a 62.5 percent reduction in earnings.
The Netherland and Germany, which are countries in Europe, are Nigeria’s cocoa top export destinations.
However, the lockdown introduced in the United Kingdom to curb the spread of coronavirus has led to weak demand for Nigeria’s cocoa.
READ ALSO: Nigeria’s Cocoa Suffers Low Demand Amid Lockdown In EU Countries
Germany introduced a nationwide lockdown on December 16 with non-essential shops and businesses closed while the Netherlands lockdown measures which started last year have been extended to March 2 and international trips have been restricted in the country until at least March 31.
Nigeria’s production of cocoa beans was around 300,000 metric tonnes in 2013/2014 but reduced to about 245,000 metric tonnes in the 2019/2020 session.
Meanwhile, the Nigerian government is prioritising the export of cocoa and soybean to other African markets under the African Continental Free Trade Area agreement (AfCFTA).
The AfCFTA, the world’s largest free trade area in terms of the number of participating countries commenced on January 1, signalling the implementation of Africa’s single market.
READ ALSO: AfCFTA: FG Prioritises Cocoa, Soybean Export
The National Action Committee on the AfCFTA said Nigerian exporters seeking to trade Cocoa under the AfCFTA could consider exporting to South Africa, Egypt, and Algeria.
Nigeria is the sixth-largest producer of cocoa with about 190,000 metric tonnes of the product annually.
The committee said exporters can sell cocoa to other African countries in form of cocoa bean (broken, raw, or roasted), cocoa powder, cocoa shells, husks, skins, and cocoa waste as well as chocolate, cocoa butter, fats, and oil.
