The Minister of State for Industry, Trade, and Investment, Sen. John Uwan-Enoh, has called for the revival of the moribund Cross River Cocoa Processing Factory in Ikom, emphasizing its potential to create 5,000 jobs and generate approximately $6.8 million annually for Nigeria’s economy.
The minister, who visited the state to inspect the cocoa facility in Ikom on Tuesday, emphasised the advantages of cocoa processing over traditional methods of production.
The N7 billion Cross River Cocoa Processing Factory was initiated by former Governor Ben Ayade in 2017, with expectations that it would become operational by early 2018.
By December 2019, the facility had reached 95% completion, and test runs were scheduled for early 2020, but they never took place.
In 2022, the factory was concessioned to AA Universal, yet it has remained moribund since then.
Cross River’s cocoa potential
While inspecting the facility, Uwan-Enoh lamented the absence of a functional cocoa processing plant in the state despite its status as the hub of cocoa production.
According to him, cocoa production is deeply rooted in the culture of the people of Ikom, Etung, and Boki in Cross River.
“In fact, all four cocoa estates established by Dr. Michael Okpara in the early 1950s are located in Etung.
“Unfortunately, for far too many years, the region has lacked a functional industry or processing facility, does not even have a functional industry or processing facility, which is a big challenge because they only export raw cocoa beans,’’ he stated.
The economic case for cocoa processing
Uwan-Enoh highlighted that the rise in cocoa prices, driven by the value of the dollar, would continue to affect farmers adversely unless they started processing.
“We must stop exporting raw cocoa and invest in functional processing factories. With support from the Bank of Industry, we can transform cocoa into more valuable products,” he said.
The minister stated that his visit was aimed at conducting an on-the-spot assessment of the cocoa facility to explore potential government partnerships with AA Universal Bean and Co. Ltd for economic enhancement.
Uwan-Enoh revealed that plans were underway to convene a cocoa processing stakeholders’ session, adding that he was willing to return to see the factory fully operational.
AA Universal’s optimism for revival
Meanwhile, Mr. Chris Agara, Chairman of AA Universal Ltd, expressed optimism that the factory would create about 5,000 jobs when fully functional and contribute approximately $6.8 million annually to the nation’s economy.
- He further noted that with improved handling of produce and technological innovation, they aimed to enhance cocoa traceability, curb child labor, and make the business more profitable for farmers.
- Similarly, cocoa farmer Mr. Oputa Ayuk expressed full confidence in the company’s capacity, describing its chairman as highly dependable.
- However, he noted that a key future challenge in cocoa production would be ensuring a steady supply of the commodity for processing.
He explained that if the company’s off-take price was not competitive, farmers would likely sell their produce to exporters offering better deals.
Anthonia Obokoh, Nairametrics
