Nigeria Denies Raw Cocoa Export Ban, to Deepen Value-Addition Drive

News in Brief:

—Nigeria has refuted claims of a raw cocoa beans export ban; claims focus is to boost local processing, create jobs and increase foreign exchange earnings.

—The move follows the relative success of the raw shea nut export ban, which increased crude shea oil exports, while similar restrictions on raw cashew exports are also under consideration.

Several news outlets reported that Nigeria is intensifying its drive to end the export of raw agricultural commodities after banning the export of raw cocoa beans. The news comes on the back of a sharp decline in cocoa exports to the European Union (EU) and growing evidence that value-addition policies are beginning to boost earnings from processed products.

The Federal Government allegedly announced the ban on July 15, 2026, saying Nigeria will no longer export raw cocoa beans but instead process them domestically into higher-value products such as cocoa liquor, butter, powder and chocolate.

However, the clarification came days later as Agriculture Minister Abubakar Kyari stated that raw cocoa exports will continue to play an important role in the country's economy. Instead, it will work on creating an enabling environment that encourages more investment in processing.

The decision aligns with President Bola Tinubu's broader industrialisation agenda, which seeks to increase local manufacturing, create jobs and improve foreign exchange earnings by exporting finished or semi-processed agricultural products.

The policy also comes as Nigeria's cocoa exports face mounting pressure in international markets.

According to the European Commission, Nigeria's agrifood exports to the EU fell from €833 million between January and April 2025 to €489 million during the same period in 2026, representing a 41% decline. The Commission attributed the slowdown largely to weaker cocoa prices and lower import demand across Europe after record trade volumes in previous years.

Domestic trade figures tell a similar story. Data from the National Bureau of Statistics (NBS) showed Nigeria exported ₦1.172 trillion worth of agricultural products in the first quarter of 2026, down 31.2% from ₦1.704 trillion recorded in the corresponding period of 2025. Raw cocoa beans were among the hardest-hit commodities, with export values falling by about 52% year-on-year.

Government Bets on Local Processing to Reverse Export Decline

Rather than viewing the decline as a setback, the government appears to be using it as an opportunity to accelerate local processing.

Speaking at the Cocoa Value Addition Summit 2026, President Tinubu declared that Nigeria must capture more value from its agricultural resources.

To support the transition, a new 70,000-tonne cocoa processing facility is under construction in Sagamu, while the Bank of Industry has committed long-term financing across the cocoa value chain. The bank has already disbursed more than ₦164 billion to agro-processing businesses and secured a €60 million credit facility from the European Investment Bank to support expansion.

Shea Success Strengthens Case for Cashew Export Restrictions

The cocoa policy mirrors the government's approach to the shea industry. Earlier this year, President Tinubu extended Nigeria's ban on raw shea nut exports for another year after an initial six-month restriction introduced in 2025. The objective was to encourage domestic processing into shea butter and crude shea oil, products that command significantly higher prices in international markets.

Early trade data suggests the strategy is beginning to deliver results. According to NBS first-quarter 2026 trade statistics, exports of crude shea oil increased 248% following the restrictions on raw shea nut exports, reflecting stronger domestic processing and rising demand for value-added shea products.

Industry observers say the success of the shea policy is strengthening support for similar measures across other agricultural commodities.

Cashew is emerging as the next target. Raw cashew exports declined from ₦172.3 billion in the first quarter of 2025 to ₦134 billion in the corresponding period of 2026, amid ongoing discussions about restricting raw cashew exports to encourage local processing.

Together, the cocoa, shea and proposed cashew policies signal a broader shift in Nigeria's agricultural export strategy; from exporting raw commodities to building domestic processing industries capable of generating more jobs, higher export earnings and greater resilience against fluctuations in global commodity markets.