Dike Onwuamaeze
Lagos Chamber of Commerce and Industry (LCCI) has expressed concern that more than half of Nigeria’s cocoa beans exports to the European Union (EU) may not meet traceability requirements under the “EU Deforestation Rules” (EUDR), which would become effective from the end of December 2026.
LCCI also called on the federal and state governments to fund rapid geolocation mapping of cocoa farms and a national traceability platform before the December deadline would put a large share of Nigeria’s key non-oil export products at risk within three months.
The concern was raised yesterday by President of LCCI, Mr. Leye Kupoluyi, during the chamber’s “State of The Economy” quarterly press conference.
Kupoluyi emphasised that cocoa earned N596.9 billion in Q1 2026, which is about 51 per cent of Nigeria’s agricultural export earnings.
He said, “The EU Deforestation Regulation (EUDR) applies from the end of December 2026.
“Industry estimates suggest that more than half of Nigeria’s cocoa beans may not meet its traceability requirements. Cocoa earned N596.9 billion in Q1 2026, about 51 per cent of agricultural export earnings. A large share of a key export is at risk within three months.”
Kupoluyi called “on the Federal Ministry of Agriculture and Food Security, the Nigerian Export Promotion Council (NEPC) and state governments to fund rapid geolocation mapping of cocoa farms and a national traceability platform before the December deadline”.
He stated, “We also call for all major export-policy announcements to be issued by a single authoritative voice, with clear timelines, so that markets are not unsettled by remarks later withdrawn.”
The LCCI president also urged the government and monetary authorities to implement measures that would reduce the cost of credit to Nigeria’s productive sectors following the central bank’s monetary policy rate reset from 26.5 per cent to 23 per cent.
He stated, “However, the reduction in the MPR should not be interpreted as an automatic reduction in the cost or availability of credit to businesses.
“The transmission from the policy rate to lending rates and actual credit allocation remains critical. Now we have a lower MPR, but the lending environment remains challenging.”
Kupoluyi said the reality confronting Nigerian businesses today was that the cost of borrowing was only one component of the overall business-risk equation that included insecurity, and an evolving political and policy environment.
He stated, “These factors have direct implications for financial institutions’ willingness to extend credit, particularly to SMEs.
“A commercial bank does not assess the affordability of credit solely based on the CBN’s policy rate. It also considers the borrower’s cash flow capacity, collateral, credit history, sectoral risks, business prospects, repayment capacity, and the broader operating environment.
“Consequently, unless the underlying business risks confronting enterprises are simultaneously addressed, the reduction in the MPR may have a limited impact on actual credit access for many SMEs.
“Credit transmission must be the next priority.”
The chamber also raised concern that multiple taxation still persisted, despite the commencement of effective implementation of the new tax laws.
It said firms ranked high multiple taxation as their most pressing constraint, ahead of insecurity and interest rates.
Kupoluyi said, “This is happening nine months after the new tax laws consolidated more than 100 sub-national taxes into nine revenue heads, abolished revenue roadblocks and banned cash collection, with penalties of up to N5 million or three years’ imprisonment.
“Manufacturers in Apapa report that trucks are still stopped by several agencies and by non-state actors between the ports and their factories.
“We call on the Joint Revenue Board and state governments to publish a consolidated schedule of lawful levies for each state, to prosecute illegal collectors visibly under the new penalties, and to establish a tax ombudsman.”