According to a report published on November 5, 2026, Nigerian exporters face a 6.1 per cent duty on cocoa paste and a 4.2 per cent duty on cocoa butter entering the EU market. However, raw cocoa beans are allowed into the bloc duty-free.

The difference is creating additional costs for Nigerian processors at a time when the government is encouraging businesses to move beyond exporting raw commodities and produce more finished and semi-processed goods locally.

Ghana and Côte d’Ivoire enjoy duty-free and quota-free access to the European market for the same semi-processed cocoa products under separate interim Economic Partnership Agreements with the EU. Nigeria, however, has not signed the regional EU-West Africa Economic Partnership Agreement, leaving its processors without the same trade advantage.

Industry estimates suggest the tariff difference could place Nigerian processors at a competitive disadvantage of up to $200 per tonne.

The challenge comes on top of high electricity costs, logistics difficulties and limited access to affordable financing, all of which have made it more expensive for local companies to process cocoa for export.

Data from the National Bureau of Statistics shows that Nigeria exported cocoa butter worth N69.2 billion to Germany, the Netherlands, Estonia, France and Belgium in the first half of 2026. Despite these exports, industry operators say the country is yet to fully benefit from the economic opportunities available through domestic processing.

Felix Oladunjoye, chairman of the Cocoa Processors Association of Nigeria, said the combination of European tariffs and high operating costs makes it difficult for Nigerian processors to compete with exporters from countries that enjoy preferential access to the EU market.

He also noted that Nigeria continues to export more than 80 per cent of its cocoa in raw form, meaning much of the potential income from processing, industrial employment and foreign exchange earnings is generated outside the country.

Akin Laoye, executive director of FTN Cocoa Processors Plc, also raised concerns about the competitiveness of the industry and the level of consultation between government and local operators on trade policy.

The situation presents a policy challenge for Nigeria as it seeks to strengthen domestic manufacturing and retain more value from its agricultural exports.

A proposed amendment to the Raw Materials Research and Development Council Act seeks to introduce a minimum requirement of 30 per cent local value addition before raw materials can be exported.

However, industry stakeholders argue that encouraging local processing will require more than domestic policy measures. Access to international markets on competitive terms, reliable electricity, better logistics and affordable financing will also be important.

For Nigeria’s cocoa industry, the EU tariff issue raises questions about how the country can expand local processing while ensuring its products remain competitive in major export markets.