NACCIMA wants cocoa processors, NAFDAC to resolve dispute

By Merit Ibe, [email protected]

The National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has called on the Cocoa Processors Association of Nigeria (COPAN) to engage in constructive dialogue with the National Agency for Food and Drug Administration and Control (NAFDAC). This call comes in light of recent disagreements surrounding NAFDAC’s proposed Export Regulation 2024.

The Director General of NACCIMA, Olusola Obadimu, emphasised the importance of resolving the conflict swiftly, underscoring the need for NAFDAC to be seen as a standard enforcement body rather than a revenue-generating entity.

The dispute arose after COPAN expressed dissatisfaction with the proposed regulation, which they view as redundant and an unnecessary overlap with existing government functions. COPAN’s Chairman, Felix Oladunjoye, criticised the policy, arguing that it would further burden the struggling non-oil export sector, particularly the cocoa processing industry. He also questioned NAFDAC’s authority in issuing business certifications within the cocoa sector, highlighting delays in obtaining necessary certifications.

Obadimu encouraged more proactive engagement between the cocoa processors and NAFDAC, suggesting that a better understanding and communication could prove beneficial for both parties. He noted that a collaborative approach could help ensure that the regulations support rather than hinder the industry’s growth, particularly in making Nigerian cocoa products more competitive in the global market. He stated, “If they [cocoa processors] can engage NAFDAC, it will be more beneficial to both parties. NAFDAC needs to clarify their intentions, which are not to extract revenue but to enhance the industry’s compliance and quality standards, thereby avoiding the rejection of goods in export markets.”

COPAN’s concerns reflect broader issues within Nigeria’s cocoa industry. Oladunjoye highlighted that the industry is operating far below capacity, with less than 20,000 metric tonnes of cocoa processed annually, despite the potential to process over 250,000 metric tonnes if all factories were fully operational.

He lamented the loss of significant employment opportunities and investment due to an unfriendly business environment, noting that of the 15 cocoa factories established in 1986, only four remain functional, operating at less than 30 per cent capacity.

The challenges are compounded by the exit of multinational companies, high taxation, and underutilization of equipment worth over N500 billion. Despite these hurdles, Oladunjoye expressed a commitment to reviving the sector, stating, “As Nigerians, we have decided to take our destinies into our hands.”

As of July 2024, Nigeria ranks as the world’s fourth-largest producer of cocoa, following Ivory Coast, Indonesia, and Ghana, with an annual output of approximately 340,000 metric tonnes, accounting for about 12 per cent of global production. The call for dialogue and cooperation between COPAN and NAFDAC is seen as a crucial step towards revitalizing the sector and ensuring the sustainability of Nigeria’s position in the global cocoa market.