The Executive Secretary and Chief Financial Officer of the Financial Reporting Council of Nigeria, Rabiu Olowo, recently warned that Nigeria could lose more than $20 billion in cocoa exports over the next three years if it fails to adopt sustainable practices. This risk arises from the potential impact on processing and market acceptance in Europe.
Olowo conveyed this concern during a meeting with lawmakers from the House of Representatives Committee on Commerce, led by Ahmed Munir representing Lere Federal Constituency in Kaduna State. Emphasizing the importance of sustainability, Olowo highlighted the need for Nigeria to address issues like deforestation and effective farmland management.
Munir echoed the urgency, stressing that sustainability is crucial for Nigeria to maintain competitiveness in cocoa exports, which are vital for chocolate production globally. He underscored that neglecting these factors could diminish the quality and marketability of Nigerian cocoa.
In 2022, Nigeria exported $489 million worth of cocoa beans, with major destinations including the Netherlands, Indonesia, Malaysia, Canada, and the United States. Nigeria must align with European processing and reporting standards to sustain its cocoa industry and safeguard its export revenue.
In the first quarter of 2024, Nigeria’s agricultural exports were led by ‘Sesamum seeds’ valued at N247.75 billion, ‘Superior quality Cocoa beans’ at N230.85 billion, and ‘Standard quality Cocoa beans’ at N140.09 billion, according to data from the National Bureau of Statistics.
Specifically, ‘Sesamum seeds’ worth N83.29 billion and N58.04 billion were exported to China and Japan, respectively. Meanwhile, ‘Superior quality Cocoa beans’ valued at N112.00 billion and N48.28 billion were exported to The Netherlands and Malaysia, and ‘Standard quality Cocoa beans’ worth N58.29 billion and N37.77 billion were exported to The Netherlands and Malaysia, respectively.
Rabiu Olowo, the Executive Secretary and Chief Financial Officer of the Financial Reporting Council of Nigeria (FRC), highlighted recent achievements, including full adoption of international financial reporting standards, amendments to the FRC act, establishment of two new directorates, and implementation of the 2020 Audit regulations. Olowo also mentioned successful discussions with the Ministers of Agriculture and Environment, receiving strong support from corporate Nigeria to boost exports and increase foreign exchange earnings.
The committee’s Chairman highlighted their crucial role in fostering a favorable climate for foreign investments. He reaffirmed the House of Representatives’ dedication to meeting the administration’s objectives, notably in simplifying business operations and attracting foreign direct investment. The committee has crafted a four-year plan aimed at bolstering legislative frameworks to drive economic growth and enhance climate resilience in commerce.
