Poor access to loan hinders growth of cocoa farming

By Ezurike Ugochukwu

Cocoa farmers in Nigeria have decried the inability of cocoa and other tree crop farmers to access any form of long term loans from banks as major setback to the growth of the industry.

The position was made known by the outgoing President, Cocoa Association of Nigeria (CAN), Mr. Sayina Riman who said that short term loan is not in any way beneficial to coca farming.

Speaking along with other stakeholders at the Ships & Ports Virtual Dialogue with the theme, “Maximising the Gains of Nigeria’s Cocoa Export in Lagos on Tuesday, he expressed his displeasure over the neglect of the industry.

The stakeholders were unanimous on the path that if really government is committed to diversifying the economy, there is urgent need to support the private sector towards boosting and enhancing the value of cocoa production in Nigeria.

Riman said that such neglect has denied the country the position it had occupied in the past, as the largest producer of cocoa before the discovery of crude oil in the country.

He called for urgent need to revive the industry, he further posits on the need to inject about five percent of the oil revenue of the country into the cocoa industry in a bid to revive it.

Nigeria’s low production per hectare, neglect of extension services and lack of encouragement for youth participation in farming were some of the reasons he said were responsible for the constant decline of the nation’s cocoa output.

He said; “Cocoa built the foundation of the oil industry and it sustained the economy in time past in the 80’s. But because of the discovery of oil which Cocoa monies were used to build, what we have seen today is the total neglect of the industry.

“Internationally, cocoa is being priced because those who produce cocoa do not consume and those who consume cannot produce it at a competitive price.

“One of the biggest challenges of the industry is total neglect. Finances are not given as at when needed for the industry.

” How many banks will be ready to give out loans for tree crop development? As much as CBN pushes them, they still give you facility to pay in 24 months at most. How can a farmer take facility and grow cocoa within 24 months and start repaying a loan?

“Cocoa farmers and the private sectors have not failed the country but the country has failed those who still produce what we still call the golden egg. If cocoa has given so much to Nigeria, what has Nigeria given into cocoa?” Riman retorted.

The sector he explained has the potential of being one the major drivers in employment generation in the country if properly harnessed.

In his speech, the Managing Director, Multimix Academy, Mr. Obiora Madu, decrie