Bamidele seek FG’s support for cocoa processing in Osun

Members of the House of Representatives on Tuesday underscored the need for Federal Government to support cocoa processing company, Ede and other cocoa processing firms in Nigeria.

The lawmakers also urged the present administration to establish a National Cocoa Processing Intervention Fund and resuscitate the Nigerian Cocoa Processing Industry.

The resolution was passed sequel to the adoption of a motion sponsored by Hon. Bamidele Salam, who called for the House intervention with the view to address myriad of challenges facing the operators.

In his lead debate, Hon. Salam observed that the Cocoa Processing Company, Ede, Osun State was established in 1982 to process and refine cocoa from harvest to finished products of a high standard for exportation.

“The House also notes that from 200, Ede Cocoa Processing Company which was a model and one of the industrialization sectors of Osun State but became moribund with equipment worth millions of naira abandoned.

“The House is aware that in 2016, the Osun State Government, in partnership with Skyrun Cocoa Processing Company rejigged the industry for optimum performance, the partnership yielded positive results with a processing capacity of 20,000 tonnes of cocoa being processed to varieties of cocoa products.

“The House is also aware that Ede Cocoa Processing Company, is one of the five cocoa processing industries that exports butter, cake, powder, and chocolate, it is one of the fastest-selling and most desirable agricultural commodities in the international market due to the rapid growth and expansion of chocolate confectioneries and other products.

“The House is concerned that Ile Oluji Nigeria Limited, one of Nigeria’s oldest cocoa processing firm can only process 2,000 metric tons of cocoa, which is far below its capacity of 30,000 metric tons daily.

“The House is also concerned that FTN Cocoa Processors Plc, a company listed on the Nigerian Stock Exchange with a 20,000MT processing capacity showed that it can only process 600MT between January and June 2018;

“The House is worried that Multi-Trex Integrated Foods Plc, Nigeria’s largest cocoa processing factory with a production capacity of 65,000MT per annum, has since been shut down and taken over by the Asset Management Corporation Organisation of Nigeria (AMCON) over a N5 billion non-performing loan.

“The House is also worried that Nigeria is currently one of the highest importers of cocoa products in the world and to stop this trend, there is a need to resuscitate the comatose cocoa industries which will, in turn, create more jobs and generate revenue for the country.

“The House is cognizant that if nothing is done to encourage the Ede Cocoa Processing Company and resuscitate the Ile Oluji Nigeria Limited, FTN Cocoa Processors Plc and Multi-Trex Integrated Foods PLC, Nigeria might revert back to its status of a cocoa exporting country instead of cocoa processing country, a status that can reduce unemployment and insecurity in Nigeria,” he said.

To this end, the House mandated the joint Committees on Agricultural Production and Services and Industry to interface with Ede Cocoa Processing Company and other cocoa processing companies to collate basic challenges that are hindering the smooth operations of the Companies and report back within four weeks for further