EU Deforestation Rules Threatens Over 50% of Nigeria’s Cocoa Exports —LCCI

News in Brief:

— Nigeria’s cocoa bean exports to the European Union may fail to meet traceability requirements under the EU Deforestation Regulation, scheduled to apply from December 2026.

— LCCI calls for urgent cocoa farm mapping and a national traceability platform, and urges the government to tackle high lending costs and persistent multiple taxation.

Nigeria could face significant disruption to its cocoa export trade with the European Union if farmers and exporters cannot meet new deforestation-related traceability requirements before the end of December 2026.

The Lagos Chamber of Commerce and Industry (LCCI) has warned that more than half of the country’s cocoa bean exports to the EU may not currently meet the EU Deforestation Regulation (EUDR). It has called on federal and state governments to accelerate cocoa farm mapping and establish a national traceability platform ahead of the deadline.

Cocoa Exports Face a Traceability Challenge

The EUDR introduced new requirements to prevent products associated with deforestation from entering or being traded in the EU market. For affected commodities, businesses must provide product information, from sourcing to processing.

Speaking at the chamber’s quarterly State of the Economy press conference, Kupoluyi said that Nigeria’s exposure scale made swift action necessary.

“Industry estimates suggest that more than half of Nigeria’s cocoa beans may not meet its traceability requirements,” he said, warning that a substantial share of a key non-oil export could be at risk within months.

For Nigeria’s cocoa sector, this places greater importance on identifying farms and documenting where cocoa is produced. Without reliable farm-level data and traceability systems, exporters could face compliance issues, potentially putting access to an important overseas market under pressure.

EU Cocoa Trade Crucial to Nigeria's Agriculture Trade

The EU is an important trading destination for Nigerian agricultural products. According to the latest data from the National Bureau of Statistics (NBS), it was Nigeria’s second-largest export market in the second quarter of 2026, with exports valued at over ₦199 billion.

However, Nigerian cocoa exports to the EU are already declining, with a report indicating a 46% reduction in the first seven months of 2026 alone. Losing access to an international cocoa market of over $2 billion could further hurt Nigerian exporters and farmers. However, the significant decline in cocoa prices, which have fallen by nearly half from their 2025 peaks, could also explain part of the reduction.

LCCI Calls for Clearer Economic Policy Signals

Beyond cocoa exports, the chamber raised concerns about the business environment, particularly the cost and availability of credit. The Central Bank of Nigeria’s reduction of the monetary policy rate from 26.5 per cent to 23 per cent has lowered the benchmark rate, but LCCI cautioned that businesses should not assume this would automatically translate into cheaper loans.

The body also criticised the continued prevalence of multiple taxation, which businesses reportedly ranked as their most pressing constraint, ahead of insecurity and interest rates.

Kupoluyi noted that the persistence of illegal levies was particularly concerning given the introduction of new tax laws intended to consolidate more than 100 sub-national taxes into nine revenue heads, abolish revenue roadblocks and prohibit cash collection. The measures include penalties of up to ₦5 million or three years’ imprisonment for relevant violations.