Nigerian firms export 12,000 tonnes of processed cocoa

Nigerian commodity firms have exported 12,000 metric tonnes of processed cocoa products, including cocoa liquor, butter and cake, to Europe under a €1 billion partnership.

Nigerian commodity firms have exported 12,000 metric tonnes of processed cocoa products, including cocoa liquor, butter and cake, to Europe under a €1 billion partnership. The export is a significant step towards Nigeria’s goal of adding value to its agricultural exports and reducing the export of raw cocoa beans.

The partnership, which involves several Nigerian firms and European buyers, is expected to expand over time, providing a stable market for Nigerian cocoa processors. The export of processed products generates more revenue and creates more jobs than the export of raw beans.

This mirrors the 2010s push for agricultural value addition, which also sought to reduce raw commodity exports. The mechanism then was different, but the result was the same: a gradual shift towards processing.

The winners: Nigerian cocoa processors, who have found a stable market; Nigerian farmers, who benefit from higher prices; and the Nigerian economy, which gains from value addition. The losers: European processors, who face competition from Nigerian processors, and the Nigerian government, which must ensure the partnership is sustained.

Bottom Line: Nigeria is exporting processed cocoa to Europe. That is progress. The question is whether the partnership will grow or remain a one-off deal.