A disagreement over a levy imposed by the Cross Rivers state government has halted Cocoa shipments in the last week from the state.
Nigeria’s second-largest cocoa grower introduced a charge of N5,000 ($30.90) per tonne of cocoa on exporters who ship beans through ports other than the state’s Calabar seaport, which diminished its viability, a Reuters report credits a trade body as saying.
Godwin Ukwu, spokesman for the Cocoa Association of Nigeria, said on Wednesday about 500 tonnes of cocoa due for export were held over the week after the local government refused to comply with a court order that it discontinue the duty.
Taxes on exports including cocoa are usually collected by the federal government.
“The levy came into being in 2011 … but we went to court to challenge it and we got a judgment restraining the government from collecting the money,” Ukwu said, noting that shipments will resume once the levy is cancelled.
Officials from the state government were not immediately available to comment.
Cocoa exports from Cross Rivers are usually destined for Europe.
Abundant rain and sunshine in the two main cocoa areas of Ondo state and Cross Rivers last month have helped the crop but there are fears that a lack of sun may allow diseases to spread hurt bean quality.
Ukwu said the logjam could affect output this season as farmers approach the main crop with export delays. Nigeria typically produces around 250,000 tonnes every year. Official figures for 2013/2014 cocoa output have not yet been released.
Cross Rivers is the second-largest grower with annual volumes of around 60,000 tonnes, in the world’s fourth biggest cocoa producer.
The state aims to generate revenue through its seaport and compete with more established seaports in the commercial capital Lagos. Farmers said they paid around 300 million naira last year to the state government in levies.
