NIGERIA – The Lagos State Governor, Babatunde Sanwo-Olu, has announced plans to establish three major cocoa processing hubs, in a move to bolster the cocoa industry and increase foreign exchange earnings through agriculture.
The unveiling of this strategic initiative took place at the International Cocoa Forum in Lagos.
Folashade Ambrose-Medebem, the commissioner for commerce, cooperatives, trade, and investment, represented Governor Sanwo-Olu during the announcement.
The Lagos State government, recognized as a trade hub for value addition, aims to leverage its strategic geographical position and robust infrastructure to position itself as a central hub for cocoa processing and trade.
Governor Sanwo-Olu said, “Our ports, coupled with an efficient transportation network, provide an excellent platform for exporting processed cocoa products to Africa and the world.”
The proposed cocoa processing plants, each with an annual capacity of 10,000 metric tonnes, aim to increase cocoa processing in Nigeria by 40% by 2026.
Additionally, the state plans to implement various intervention programs, training over 20,000 cocoa farmers and small-scale enterprises.
“The journey to transforming Nigeria’s cocoa industry into a more value-added and proper industry requires collaboration,” Governor Sanwo-Olu emphasized. “Lagos State, with its vision and resources, is committed to leading this transformation.”
Nigeria, the world’s fourth-largest cocoa producer, experienced a 3.4% decline in cocoa production to 280,000 metric tonnes in the 2022–2023 season, according to the International Cocoa Organization (ICCO).
Despite being a major cocoa producer, Nigeria often exports raw cocoa, missing out on potential value addition. The Lagos State initiative aims to address this by enhancing processing capabilities and competitiveness.
Governor Ademola Adeleke of Osun State commended the efforts of the Western Region Development Initiative in revitalizing cocoa production. He stressed the importance of a regional approach and partnerships with research institutes to enhance value addition and processing of cocoa products.
Osun State, with an annual production capacity of 80,000 metric tonnes, currently produces 22,000 metric tonnes.
Governor Adeleke emphasized the significance of returning to old cash crops with deep value additions and processing to finished products. Cocoa remains a major source of earnings for Osun State, contributing significantly to the state treasury.
“The graded figure for the year 2023 is 13,000 metric tonnes, with the state earning N108 million (US$125,725). In my administration’s drive to attain the number one position in the community of cocoa-producing states, we are doubling down on the implementation of our agenda,” he added.
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