…says FG to strengthen local processing of cocoa
Vice President Kashim Shettima has said that Nigeria is actively pursuing a massive $25 billion undersea gas pipeline project meant to supply gas to Europe.
He also notes that the Government is moving the country from a net exporter of raw cocoa to a net exporter of processed cocoa by adding value and strengthening local processing before exporting the product.
Vice President Shettima noted that President Bola Tinubu’s bold economic reforms had repositioned Nigeria as a prime investment destination, especially in the energy sector.
He stated this on Monday during a meeting with Vitol Group, the World’s largest independent commodity trader, at the Presidential Villa, saying Nigeria’s leadership transformation under President Tinubu represents an unprecedented opportunity for international investors.
He said, “Most importantly is the leadership. President Bola Ahmed Tinubu grew up in that ecosystem- energy and finance.
Read also: Nigeria to revive cocoa industry, says Shettima
“In the past 25 years, we have not had a leader who has the courage to take far-reaching decisions as he has taken- the removal of fuel subsidy, the unification of the multiple exchange rates, and the tax reforms.”
The Vice President, who made a direct appeal to global investors, stated that “he (the President) is putting Nigeria on a new trajectory. This is where the action is, invest in Nigeria.”
Shettima described Nigeria’s gas sector as a beacon of stability and transparency amid global uncertainty. “The world is changing, and ours is actually a gas and not an oil economy. We have the eighth largest gas reserve in the world,” he said.
The Vice President urged Vitol to bring its considerable technical expertise and global influence to bear in advancing Nigeria’s gas infrastructure and exports.
“The Nigeria Liquefied Natural Gas Limited (NLNG) has been largely insulated from Government interference. What we are getting from the NLNG is so predictable. We really want to harness the potential in the gas sector fundamentally because of the stability and transparency in that arena”, Shettima said.
Similarly, President Shettima said the Administration of President Bola Tinubu is fully committed to reviving the cocoa industry and the whole agricultural value chain in Nigeria, with a target of moving the sector from mere producer to processor of cocoa on the global stage.
According to him, the Administration is putting everything in place to ensure that Nigeria moves from a mere producer of cocoa to a processor of cocoa by promoting sustainable cocoa farming and forest preservation.
Shettima, who stated this on Monday during an audience with a delegation from the World Cocoa Foundation (WCF) led by its President, Chris Vincent, at the Presidential Villa, noted that “it is in a bid to return to the drawing board in respect of revamping the nation’s cocoa industry that the Federal Executive Council (FEC) recently approved the establishment of a National Cocoa Management Board (NCMB).
“Let’s walk the talk. We used to be one of the world’s leading cocoa producers, but because of the advent of oil, we have been relegated to the background now.
“But we can reclaim that lost glory, and the President is fully committed to revitalising not only the cocoa industry but all agricultural value chains.”
Shettima pointed out that the price of cocoa had skyrocketed globally, assuring that “with the Renewed Hope Agenda of President Bola Tinubu,” Nigeria is poised to go “back to the drawing board.”
“At our last Federal Executive Council (FEC) meeting, the government approved the establishment of the National Cocoa Management Board geared towards revitalising the cocoa industry and the whole cocoa value chain,” he added.
The Vice President stressed the need for Nigeria to start processing cocoa products, just as he told the WCF delegation that the nation has the manpower, with capable young Nigerians who are willing to take advantage of the job opportunities in the agricultural sector.
He said, “We don’t want to be producers of cocoa; we want to be processors of cocoa because a tonne of cocoa will fetch you $9,000 now, but processed cocoa will get you $30,000. If you turn them into chocolate bars, that might fetch you $50,000.
“So, we have the manpower, the average age of the nation is 17. We have very virile young men who are willing to work if they have the opportunity. So, I’m speaking from the heart; we are willing to partner with your organisation.”
VP Shettima also disclosed that he was already working on building a cocoa farm to lead by example, saying the passion is not driven by profit making, but by the desire to contribute to the social welfare of the country.
“I want to walk the talk. It is not even about the profit criteria; no. It’s about the social welfare criteria – employing people. Look, let me take you to my farm and you’ll be convinced that the new Nigerian leadership is actively involved and is itching to drive the process.”
The Vice President pledged Nigeria’s readiness to work with WCF, assuring that he would personally engage the Governor of Taraba State to secure the 10,000 hectares in Kurmi Local Government Area of the State for the WCF and other partners to expand their investments in the nation’s cocoa industry.
Earlier, Chris Vincent, Vice President of the WCF, declared the Foundation’s readiness to work with the Nigerian Government to revitalise the cocoa sector in Nigeria in line with the European Union’s sustainable regulations.
He said, “We are in the middle of a global cocoa supply shortage, and the prices have risen four times over the last three years. We are looking for new supplies of cocoa, sustainable cocoa in particular,” he stated, noting that the WCF represents the whole global cocoa supply chain, which includes the very biggest manufacturers of both chocolate and cocoa.
“The key thing here is that we have a clear alignment with industries which need to grow in supply sustainably, and I’m aware of the Nigerian State’s ambition to grow cocoa as a crop, and I know the opportunity is now. Because we are in a supply deficit, the next two to three years are an opportunity for growth.”
Read also: Shettima at Taraba’s investment summit, says state is Nigeria’s agric powerhouse
Jeffery Dellapina, Chief Financial Officer of Vitol Group, said that Vitol has a long-term commitment to Nigeria.
“This has been an incredibly close and important country for Vitol for a very long time. We have participated in a lot of things from the downstream, financing, trading and government support when needed.”
“We do want to maintain an understanding that Vitol is committed, and we are always available to deploy capital when needed. We want to say that Vitol is committed to this country, and we want to stay in this country and evolve with you.”
Also, Vitol Group’s Head of Public Affairs, Murtala Baloni, noted that the company is currently enjoying a favourable business relationship with Nigerian companies and the Government.
“We support the business of the government in ways that we can in the deployment of capital. We were one of the major funders of Project Gazelle, a crude oil-backed forward-sale finance facility by the Nigerian National Petroleum Company Limited (NNPC Limited), where we put in $300 million during the COVID-19 period,” he stated.
