Stakeholders in the Cocoa industry have faulted the content of a Bill on Export Regulations before the National Assembly, noting that it will negatively impact the business of cocoa beans exports.
According to the stakeholders under the body, Cocoa Processors Association of Nigeria (COPAN) the bill promoted by National Assembly by the National Agency for Food and Drug Administration and Control (NAFDAC),
will undermine the progress made by Nigeria to earn more from the export of cocoa beans and contribute to the nation’s GDP as obtainable in Cote d’Ivoire and Ghana.
COPAN is the umbrella body of manufacturers engaged in processing raw cocoa beans into Cocoa cake, Cocoa Powder, Cocoa liquor, and Cocoa butter for both local and international markets in Nigeria.
Chairman of COPAN, Otunba Felix Oladunjoye, explained that the proposed Export Regulations 2024 would kill their businesses because the agency lacks both the infrastructure and human capabilities to regulate numerous export transactions in the Nigerian sea and airports.
He said that the proposed bill represents another ‘Toll Gate.’
He stated further: “Nigeria’s current foreign exchange inadequacy will suffer more under the new NAFDAC export regulations. NAFDAC’s proposed export regulations 2024 are a sheer duplication of efforts and functions of other government agencies.
“If the National Assembly passes the bill into law, the resultant effects would be multiple taxation, delayed shipments resulting in international contract default, heavy penalties on Nigerian exporters, loss of employment, and worsening company profitability.”
He cited Sections 3, 4, and 17 of the proposed NAFDAC’s Export Regulations 2024 as not being business-friendly.
Section 17 says, “(a) Where the Agency considers the application for export to be satisfactory and having met all the requirements prescribed by the Agency for exportation, the applicant shall be issued with the appropriate certificate; (b) Where the application for export is unsatisfactory, the applicant shall be informed in writing and stating the reasons for non-issuance of the applicable certificate”.
Oladunjoye explained that these sections deal with regulated exports, which are within the purview of the Nigeria Export Promotion Council, NEPC, which regulates all exports as a Federal Government Agency.
“NAFDAC taking up this responsibility is a duplication of duty, which is already in existence, and double payments for the same service being rendered by NEPC. These particular sections are for revenue generation, which would affect our operations financially and economically and delays in shipments.”
Oladunjoye regretted that Nigeria has been relegated to sixth position in Cocoa production in the world and third in Africa behind Cote d’Ivoire and Ghana
