Nigeria is taking bold steps to strengthen its position in the global cocoa industry as it shifts attention from exporting raw cocoa beans to processing them into higher value products. The renewed focus follows the Bank of Industry’s €60 million financing facility from the European Investment Bank and a new regional alliance involving Nigeria, Ghana, Côte d’Ivoire and Cameroon to promote cocoa value addition.
The two developments reflect a growing determination among Africa’s leading cocoa producers to earn more from the global chocolate market. Although the four countries account for about 75 percent of global cocoa production, they receive only a small share of the industry’s profits because most cocoa is exported in its raw form and processed abroad.
At the 2026 Cocoa Value Addition Summit in Abuja, the four countries signed the Abuja Declaration, agreeing to work together to reduce raw cocoa exports and encourage local processing. The alliance is expected to strengthen their bargaining power, attract investment and help member countries retain more value from the cocoa industry.
To support this goal, the Bank of Industry secured a €60 million facility from the European Investment Bank to finance cocoa processing and chocolate manufacturing in Nigeria. The funding is expected to help businesses expand production, improve processing equipment and increase the manufacture of value added cocoa products.
Stakeholders who spoke with Business Times described both initiatives as important steps towards transforming Nigeria’s cocoa sector.
Chinwe Edeh said reducing the export of raw cocoa beans would allow African countries to earn more by processing cocoa into finished products instead of selling it in its raw form. According to her, the move would also create jobs and strengthen local industries. Rebecca Bolaji agreed, saying local production would reduce Nigeria’s dependence on imported chocolate and beverages if the funding is properly utilised.
Faith also welcomed the initiative, noting that the global cocoa market has traditionally favoured developed countries that buy raw cocoa at lower prices before producing and selling finished products at much higher values. She believes increasing local processing will improve returns for cocoa producing countries.
The stakeholders also believe the €60 million financing will provide much needed support for the industry.
Edeh said the facility could help businesses upgrade equipment, expand processing capacity and increase the production of value added cocoa products. Faith added that the investment could encourage more people to venture into cocoa farming because stronger local demand would create better market opportunities.
Despite Nigeria’s strong cocoa production, stakeholders identified several challenges that have limited local processing. Edeh pointed to poor electricity supply, inadequate infrastructure, limited financing, inconsistent government policies and low investment as major obstacles. Bolaji believes the country has continued exporting raw cocoa because it lacks enough processing capacity. Faith also cited the high cost of processing equipment and limited government support for the industry.
Stakeholders believe addressing these challenges is essential if Nigeria is to build a competitive cocoa processing industry. They also highlighted the economic benefits of processing cocoa locally. According to Edeh, increased local processing would create jobs, improve farmers’ incomes, strengthen local businesses and boost export earnings. Bolaji said it would provide employment opportunities for young people while reducing the country’s dependence on imported cocoa products. Faith added that it would generate more revenue for the economy and lower the cost of importing chocolate and related products.
On the regional alliance, Edeh said working together would enable the four countries to negotiate better prices and secure greater value from the global cocoa market. Bolaji added that the partnership would improve the visibility and reputation of African cocoa producing nations.
Looking ahead, stakeholders urged the government and private investors to sustain the momentum. Edeh called for better infrastructure, affordable financing, greater support for cocoa farmers and increased investment in processing plants. Bolaji also recommended establishing more factories to produce chocolate, biscuits and other cocoa based products.
While significant challenges remain, the combination of regional cooperation and fresh financing offers Nigeria an opportunity to move beyond raw cocoa exports. If backed by consistent policies and sustained investment, the country’s cocoa industry could become a stronger driver of industrial growth, job creation and non oil export earnings.
