Alternative Bank proffers measures to boost Nigeria’s cocoa production, export
The Alternative Bank Ltd., ethical banking subsidiary of Sterling Financial Holdings Plc, has proffered measures which the Federal Government can take to boost Nigeria’s cocoa production and export.
The bank’s Group Head, Structured Trade & Commodities Finance, Mr Gbenga Awe, proffered the measures in an interview with the newsmen on Sunday in Lagos.
Awe noted that the Nigerian cocoa industry can be number one cocoa exporter in Africa, if the measures are put in place.
“The Nigerian cocoa industry is crucial to the economy, ranking fourth in global production and third in exports. With a decline in supply from Ivory Coast and Ghana, Nigeria has an opportunity to become the top exporter.
“However, challenges such as inadequate research and development and limited sustainable farming practices persist.
“By investing in modern agricultural practices and infrastructure, Nigeria can significantly increase its cocoa production and quality.
“The Nigerian government can increase the amount of cocoa produced by creating regulations that are favourable to the industry.
“Also by offering financial support at affordable rates, financing agricultural research and development, marketing Nigerian cocoa abroad, and instituting tax holidays or subsidies for cocoa exporters.
“To elevate Nigeria’s cocoa output to match Ivory Coast, adopting modern agricultural practices and planting high-yield seedlings is crucial,” Awe said.
He also reiterated that, “To guarantee a consistent supply to the international market, the government must spend in research and development to create high yield cocoa varieties that mature in less than two years.
Awe noted that the bank partners with leading cocoa exporters by providing financing and support to enhance productivity and market access.
“To revive the cocoa sector, exporters must focus on value addition. Exporting raw cocoa beans limits its revenue potential.
“At Alternative Bank, we ensure our customers add value to their cocoa before exporting and this is evidenced in the number of cocoa factories we have funded for equipment acquisition and raw material sourcing for chocolate and other by- products production.
“This has resulted in enhanced export proceeds and foreign exchange inflows,” Group Head said.
He harped on the importance of the optimising Nigeria’s cocoa value chain for increased revenue generation of the sector.
“Nigeria’s cocoa value chain needs to be optimised, and to do so, we need to establish cocoa processing facilities, invest in quality control, farm mechanisation, enhance farmer training, and create effective marketing plans to ensure our cocoa products are attractive to the global market.
“The bank supports the value chain by providing financing for all the players across the value chain, partnering with industry leaders to achieve value addition to their products before export.
“This drives economic growth and increases stakeholder revenue, making Nigerian cocoa more competitive globally.
“To restore agriculture’s prominence, Nigeria needs to diversify its economy, revitalise agricultural education, provide incentives for farmers, improve market access, and raise awareness about agriculture’s economic benefits,” he said.
The Alternative Bank is an independent financial organisation in the Non-interest Banking sector.
The bank which commenced operations in 2014, is dedicated to ensuring adherence to Non-Interest Banking principles through the appointment of an Advisory Committee of Experts.
