Stakeholders in Nigeria's agricultural sector have raised concerns that the country's cocoa and oil palm value chains require stronger farm mapping, traceability systems, and production documentation to comply with the European Union Deforestation Regulation (EUDR). The regulation poses a significant threat to Nigeria's annual export earnings of over $1 billion. Experts have identified inadequate coordination among farmers, government agencies, cooperatives, and exporters as a major challenge to meeting international market requirements.
According to Oyewole Okewole, Senior Associate Consultant at FutuX Agri-consult Limited, farmers must establish comprehensive farm records, including mapping and registering their farms with essential information. This includes the farmer's name, unique identification number, farm size, community, and local government area. Accurate mapping is crucial to establishing the origin of agricultural produce. Okewole also emphasized the need for farmers to maintain production histories showing that their land was not subject to deforestation after December 31, 2020.
Cooperatives can play a significant role in reducing the cost and complexity of compliance by providing shared services and establishing systems that connect farmers to their respective farms and produce. Okewole recommended the creation of a verified farmer register, with each member assigned a unique identification number linked to mapped farms and crop types. Digital farm databases containing geographical coordinates, farm boundaries, farmer details, production records, and transaction histories can also support compliance.
Dr. John Isemede, an agribusiness expert and consultant to UNIDO on export value chain, expressed concern over Nigeria's persistent gaps in quality infrastructure and the failure to translate existing policy recommendations into effective action. He questioned why the potential loss of over $1 billion in annual export earnings had only recently drawn attention to the issue. Isemede recalled that the European Union, through UNIDO, managed a National Quality Infrastructure Project (NQI-P) to strengthen farmers' activities and address challenges associated with traceability, documentation, and product rejection.
Isemede argued that Nigeria's difficulties extend beyond the immediate requirements of the European regulation, pointing to longstanding weaknesses in the country's quality infrastructure and limited connection between farmers, government institutions, and export businesses. He expressed concern about the handling and presentation of Nigerian produce, including yam and shea butter, and linked poor packaging and inadequate documentation to product rejection in foreign markets.
Okewole recommended that exporters and processors verify the entire supply chain rather than relying on individual certificates or GPS coordinates. Exporters must compile evidence required by the European Union operator or trader responsible for due diligence obligations and ensure that the required due diligence statement is submitted before the product is placed on the EU market or exported. Digital solutions, such as Farm Droite, can support these processes.
The Nigerian government and stakeholders must address the challenges facing the country's cocoa and oil palm exports. The implementation of the EUDR requires a coordinated effort from farmers, cooperatives, processors, and exporters to ensure compliance. The country's agricultural sector must adopt robust farm mapping, traceability systems, and production documentation to protect its export earnings and maintain competitiveness in international markets.
Key points
- Nigeria's cocoa and oil palm exports worth over $1 billion face a threat due to non-compliance with the European Union Deforestation Regulation.
- Stakeholders have identified inadequate coordination among farmers, government agencies, cooperatives, and exporters as a major challenge to meeting international market requirements.
- The implementation of the EUDR requires a coordinated effort from farmers, cooperatives, processors, and exporters to ensure compliance.
