To enhance value addition and bolster foreign exchange inflows through agriculture, Lagos State Governor Babatunde Sanwo-Olu has unveiled plans to establish three cocoa processing hubs in the state. Folashade Ambrose-Medebem, the commissioner for commerce, cooperatives, trade, and investment, shared this initiative during the recent International Cocoa Forum held in Lagos on behalf of the governor.
Highlighting Lagos as a strategic trade hub for value addition with its favorable geographical location and robust infrastructure, Ambrose-Medebem emphasized the state’s potential to become a central hub for cocoa processing and trade. Governor Sanwo-Olu outlined the ambitious plan to set up three major cocoa processing plants in Lagos, each with an annual capacity to process 10,000 metric tonnes.
The governor aims to increase cocoa processing in the country by 40 percent by 2026 through these processing plants. Additionally, the state plans to train over 20,000 cocoa farmers and small-scale enterprises via various intervention programs. The goal is to transform Nigeria’s cocoa industry into a more value-added and efficient sector, and Lagos State is positioned to lead this transformative journey.
Governor Sanwo-Olu emphasized the need for collaboration in achieving this transformation, inviting stakeholders to work together for the sustainability and prosperity of the cocoa industry, the economy, and the people.
Nigeria, the fourth-largest cocoa producer globally, experienced a 3.4 percent decline in the value of its global cocoa supply to 280,000 metric tonnes in the 2022–2023 season, according to data from the International Cocoa Organization (ICCO). Despite its agricultural potential, the country predominantly exports raw cash crops, falling short of its non-oil export potential due to limited agro-processing and competitiveness.
Governor Ademola Adeleke of Osun State commended the Western Region Development Initiative (DAWN), a private sector-led effort to revive cocoa production in Nigeria. He urged each state in the southwest region to develop a local revival plan for cocoa, emphasizing a bottom-up approach for optimal results. Governor Adeleke highlighted the imperative of returning to value-added processing for old cash crops, with cocoa playing a pivotal role in contributing significantly to Osun State’s treasury.