Nigeria Should Produce Chocolates Instead Of Exporting Raw Beans – Adesina osundefender.org/?p=198838 Minister of agriculture and rural development, Dr. Akinwumi Adesina has disclosed that cocoa processing factories in the country generate between $90 million and $400 million annually even at their low capacity rates. Accordingly, he urged Nigerians to give more priority to cocoa processing instead of exportation of cocoa beans, adding that a special cocoa intervention fund will also be established to support cocoa processors for asset acquisition and working capital. The minister who stated this in his keynote speech at the 50th anniversary of the Cocoa Research Institute, Ibadan was apparently allaying fears that the oil-dependent economy of Nigeria might suffer serious setback if not diversified. He noted that, while the decline in the price of crude oil is a wake-up call, “agriculture must become Nigeria’s new oil. Nigeria must now invest even more in the agriculture sector to diversify the economy and build economic resilience”. Underscoring the impact of federal government’s transformation in agriculture, Dr. Adesina observed that “Nigeria’s food import bill declined from $6.9 billion in 2009 to $4.34 billion by the end of 2013, thus trimming foreign exchange deficit”. Adesina noted in the address read on his behalf by a director in the ministry, Mr. Damilola Eniaiyeju that “The Export Expansion Grant (EEG) has helped to expand incentives for commodity exports but has stifled development of local grinding and processing, as focus was on exporting raw beans. “Nigeria will move beyond exporting raw cocoa beans. Currently, Nigeria has eight functioning cocoa processing factories, with a total installed capacity of 157,000 metric tons of cocoa beans. “These companies have collectively made investments of US$ 267 million. Despite challenges, these cocoa processing factories, even at their low capacity rates, generate between US$90 million and US$ 400 million annually. “As we improve the enabling environment, they will have the capacity to each generate US $500 million per year”, he noted, adding, that “this requires investments in chocolate manufacturing companies. and transforming the EEG to Value Addition Expansion Grant to boost industrial processing of cocoa into cocoa liquor, cocoa cakes, cocoa powder, cocoa butter and chocolates.” Disclosing that “a special cocoa intervention fund will also be established to support cocoa processors for asset acquisition and working capital”, the minister noted that the government “will stimulate private investment through the provision of fiscal, investment and infrastructure incentives such as a zero percent duty on importing agro-processing equipment and tax holidays for food processors.
Posted on: Mon, 08 Dec 2014 21:46:36 +0000
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