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African cocoa farmers face possible exclusion from EU market, group warns

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The Coffee Farmers Alliance Association of Africa has warned that up to 40 per cent of African smallholder cocoa farmers could be excluded from the European market because they cannot meet compliance requirements under the European Union Deforestation Regulation.

The Global President of COCEFAAA, Adeola Adegoke, raised the concern at the conclusion of the two-day Africa Cocoa and Coffee Conference held in Lagos, where stakeholders called for stronger African participation in shaping international trade policies affecting the continent’s cocoa and coffee industries.

In a statement issued on Wednesday, Adegoke expressed concern that the regulation could impose significant challenges on smallholder farmers, particularly those who lack the financial resources, technology and documentation systems required to meet its traceability standards.

He said, “Up to 40 per cent of African smallholder farmers could face exclusion from the European market if they are unable to comply with the requirements.

“The EUDR is designed to ensure that certain commodities entering the European Union market are not linked to deforestation. However, concerns have emerged over the cost and complexity of compliance, particularly for small-scale farmers who may struggle to provide the necessary information to demonstrate compliance,” he added.

Adegoke stressed the need for African cocoa-producing countries to strengthen their negotiating positions and improve traceability systems to protect farmers from potential disruptions to international trade.

He called for measures to ensure that smallholder farmers receive adequate technical and financial support to meet evolving market requirements without losing access to key export destinations.

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Another major issue discussed at the conference was the emergence of cell-cultured cocoa technologies and their potential implications for traditional cocoa-producing communities.

Adegoke expressed concern that increased investment in alternative cocoa production technologies could affect demand for conventionally grown cocoa and create additional uncertainty for farmers whose livelihoods depend on the crop.

He urged African countries to assess the potential economic and social implications of these technologies while developing strategies to safeguard the interests of cocoa farmers and their communities.

The conference also highlighted the need for stronger cooperation among African cocoa- and coffee-producing countries to ensure that the continent has a greater voice in shaping international trade policies and standards.

Participants adopted the Lagos Declaration 2026, a shared statement of commitments aimed at improving farmers’ livelihoods, boosting productivity and expanding African ownership of the cocoa and coffee industries.

More than 200 delegates attended the conference, representing producing countries, governments, research institutions, development partners, commodity associations, private businesses, multilateral organisations and the media.

Speaking on the challenges facing the continent’s cocoa and coffee sectors, Adegoke said Africa had the expertise and solutions needed to transform the industries but lacked effective mechanisms to scale them across the continent.

“Africa is not short of solutions. We are short of mechanisms to scale them,” he said.

The Lagos Pact outlines three key positions that African cocoa- and coffee-producing countries intend to advance at continental and international negotiations.

These include reserving the terms “cocoa” and “coffee” for farmed products, advocating mandatory “Cell-Cultured Product” labelling at the Codex Alimentarius, and proposing a one per cent adaptation levy on revenues from cell-cultured products to support African smallholder farmers through the Common Fund for Commodities.

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The pact is expected to serve as Africa’s common position at the African Union Summit scheduled for February 2027.

The conference further highlighted Africa’s limited share of the value generated by its cocoa and coffee production, despite the continent’s significant contribution to global output.

According to figures presented by Adegoke, Africa produces about 75 per cent of the world’s cocoa and 12 per cent of its coffee but captures less than six per cent of the value of chocolate, while many farmers earn approximately $1.20 a day.

The Lagos Declaration 2026 commits participants to coordinated action in eight key areas: planning and coordination; unity and governance; farmers’ welfare; productivity; sustainability; traceability and product identity; value addition and finance; and people’s welfare.

Under the declaration, participants pledged to develop African strategic plans with clear responsibilities, timelines, and measurable outcomes. They also committed to strengthening farmers’ cooperatives, improving farmers’ incomes, investing in research and extension services, protecting forests and promoting climate resilience.

The declaration further calls for greater investment in local processing, stronger African brands and expanded access to markets under the African Continental Free Trade Area (AfCFTA).

The commitments are intended to strengthen Africa’s position in global cocoa and coffee value chains, protect farmers’ livelihoods and ensure that a greater share of the value generated by these commodities remains on the continent.

Source: punchng.com

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IMF advises Nigeria against restoring blanket petrol subsidy, read details

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The International Monetary Fund has advised Nigeria against restoring blanket petrol subsidy, urging the Federal Government to channel support towards vulnerable citizens as rising energy costs put pressure on households.

The Director of the IMF’s Fiscal Affairs Department, Rodrigo Valdés, gave the advice on Wednesday while responding to a question about calls for the return of petrol subsidy in Nigeria ahead of elections, during the IMF and World Bank Group annual meetings in Bangkok, Thailand.

Valdés acknowledged the political pressure governments face when fuel prices rise but said blanket subsidies were costly and that available resources would be better used to support people most affected by higher energy prices.

He said, “At the end of the day, it’s very tempting politically speaking because it’s not trivial the political effect of the price of oil, of fuels, of gasoline, of diesel.

“But you have to explain that this is a global shock, first. Second, that it’s very, very expensive for the country not to recognise that shock.

“And third, it’s much better to use some of that money that would you spend in the subsidies channeled towards more vulnerable people.”

He added that targeted support was preferable to a blanket subsidy, saying: “Yeah, gasoline could go up and perhaps bus fees may be subsidised in a way. That is a much better policy at the end of the day than just a blanket subsidy for everybody.”

He said governments should consider targeted assistance rather than keeping fuel prices artificially low for all consumers.

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The IMF has argued that broad-based fuel subsidies are expensive and often disproportionately benefit higher-income consumers, who tend to consume more fuel.

The advice comes as Nigeria faces renewed pressure over petrol prices following increases in global energy costs.

The Federal Government recently announced a 30-day petrol discount at Nigerian National Petroleum Company Limited retail stations, with priority for public transport operators, to cushion the impact on consumers.

Finance Minister Taiwo Oyedele said NNPC retail would sell petrol at cost by foregoing its retail profit margin, describing the measure as temporary relief rather than a return to petrol subsidy.

The government has also proposed negotiating a ceiling of N1,350 per litre on petrol’s ex-gantry or landing cost, subject to monthly reviews.

Valdés said fuel subsidies could also worsen global energy pressures by preventing demand from adjusting when supplies were constrained.

“When you subsidise, you don’t allow, at the end of the day, demand to adjust.

“And reality is that we have less fuels in the world economy. That means that someone else has to adjust more, and the market produces a higher price for that,” he said.

The IMF also recommended targeted interventions to cushion the impact of higher fuel prices on transportation costs.

A division chief in the fund’s Fiscal Affairs Department, Davide Furceri, suggested that governments could redirect resources from blanket subsidies towards support for public transport users and other vulnerable groups.

He also suggested measures such as school feeding programmes, geographical targeting and assistance for vulnerable farmers.

Furceri acknowledged that some countries lacked household registries and digital payment systems needed to deliver targeted assistance effectively, but said governments could adopt alternative approaches while developing stronger systems.

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He recommended that support should be limited, targeted and temporary.

Source: punchng.com

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NNPC awaits reports on PH, Warri refineries’ revival

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The Nigerian National Petroleum Company Limited is waiting for technical assessments from two Chinese firms on Port Harcourt and Warri refineries before proceeding with plans for additional investment agreements.

The NNPC’s Chief Corporate Communications Officer, Andy Odeh, disclosed this in an exclusive interview with our correspondent, following the company’s latest update on the proposed partnership.

The Chinese firms – Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Limited – have conducted about three months of detailed on-site assessments alongside NNPC’s technical teams.

In its response to questions from The PUNCH, the company said the technical report was being finalised after the assessment, which is expected to establish the work and technology required to make the refineries commercially competitive.

“The prospective partners have carried out approximately three months of detailed on-site assessment with their senior engineers, working alongside NNPC teams. The technical report is being finalised. The assessment is intended to establish what work and technology are needed for competitive operations,“ Odeh said.

The NNPC said it was pursuing a technical equity partnership model to restore the facilities to sustainable operations, stressing that rehabilitation work alone would not guarantee success.

“As the Group Chief Executive Officer, Engr Bayo Ojulari, has explained, successful rehabilitation requires financing, competent engineering and construction, and strong operating capability.

“Completing repairs alone is not enough; the facilities must also be able to operate reliably and profitably,” he noted.

The company said the next steps would involve completing the assessment report, receiving a detailed proposal from the prospective partners and agreeing on the technical and commercial terms.

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“The next milestones are completion of the assessment report, a detailed partner proposal, and agreement on the technical and commercial terms. Definitive agreements, the necessary approvals and an investment decision would then provide the basis for a credible programme for completing work and restarting operations,” it stated.

However, the NNPC said it could not announce a restart date until the requirements had been settled.

“We cannot responsibly promise a restart date before these requirements are settled,” the company said, adding that the assessment was concrete progress but that Nigerians would ultimately judge the initiative by sustained production and reliable product supply.

“We cannot responsibly promise a restart date before these requirements are settled. The engineering assessment is concrete progress, but Nigerians will ultimately judge success by sustained production and reliable product supply. We will continue to communicate verified milestones as the process advances,“ Odeh stated.

The proposed partnership follows the memorandum of understanding signed by the NNPC and the two Chinese firms on 30 April, 2026. The agreement covers the completion of outstanding work, operation and maintenance of the Port Harcourt and Warri refineries, and the assessment of possible upgrades and expansion, including petrochemical opportunities.

The NNPC, however, clarified that the MoU was only a preliminary framework and not a final investment or operating agreement.

At a media parley on 29 September, Ojulari reaffirmed that the company would not proceed with further rehabilitation without a credible route to commercial viability.

The company said the proposed model was intended to bring in partners willing to invest and share responsibility for the refineries’ performance, rather than contractors whose involvement ends after payment for completed work.

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“This is intended to protect public value and avoid repeating arrangements that did not deliver sustained results,” the NNPC stated.

It also clarified that work on the Kaduna refinery had not commenced under the partnership model, noting that the agreement with the Chinese firms covered only Port Harcourt and Warri.

On the impact of the proposed revival on petrol prices, the NNPC said more efficient domestic refining could strengthen supply, increase competition and reduce dependence on imported finished products.

“We understand why Nigerians are asking about our refineries as petrol prices put pressure on household budgets and businesses. Our priority is to restore reliable, commercially sustainable refining capacity while supporting practical relief for customers,“ Odeh noted.

Meanwhile, the NNPC said its retail petrol discount, introduced on 1 October, would continue until 31 October, 2026, as part of efforts to provide temporary relief to customers.

Source: punchng.com

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IMF warns poverty risks persist despite Nigeria’s economic stability

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The International Monetary Fund has warned that rising prices of essential goods could worsen poverty and food insecurity in Nigeria despite improvements in the country’s macroeconomic stability and favourable external trade conditions.

The IMF disclosed this in its October 2026 World Economic Outlook report, titled ‘Resilience Under Strain, Urgent Choices’, published on Tuesday, highlighting the growing disconnect between improvements in economic indicators and the living conditions of vulnerable households.

“Nigeria is supported by improved macroeconomic stability and favourable terms-of-trade effects, though higher prices for essentials are expected to further aggravate poverty and food insecurity,” the Fund stated.

The assessment suggests that Nigeria’s recent economic stabilisation efforts have strengthened its economic outlook but have yet to eliminate the pressures facing households, particularly those struggling with the rising cost of food and other basic necessities.

According to the IMF, Nigeria is among the larger economies in sub-Saharan Africa benefiting from earlier stabilisation measures and economic reforms, although the region remains exposed to commodity price volatility, climate shocks and limited access to external financing.

The report projected that economic growth in sub-Saharan Africa would remain stable at 4.5 per cent in 2026, reflecting differences in policy implementation, fiscal capacity and exposure to global economic disruptions.

It stated, “Growth in sub-Saharan Africa is expected to remain stable at 4.5 per cent in 2026, though this masks some substantial divergence across countries.”

The IMF explained that while oil-importing and non-resource-intensive economies were facing greater pressure from rising energy and food prices, some larger economies were benefiting from earlier reforms and improved economic conditions.

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Nigeria’s favourable terms-of-trade position provides some support to economic activity, particularly amid changes in international commodity prices.

However, the Fund’s assessment indicates that stronger macroeconomic fundamentals do not automatically translate into improved household welfare, especially when the cost of essential commodities continues to rise.

The report also identified declining official development assistance and limited participation in the global artificial intelligence investment boom as challenges facing several African economies.

The IMF’s country-specific projections showed that Nigeria’s economy is expected to expand by 4.2 per cent in 2026, compared with an estimated 4.0 per cent in 2025, before accelerating to 4.3 per cent in 2027.

The 2026 forecast represents an upward revision of 0.1 percentage point from the Fund’s April projection, while the 2027 estimate was also raised by 0.1 percentage point.

On inflation, the IMF projected that Nigeria’s average consumer price inflation would decline from 23.0 per cent in 2025 to 15.6 per cent in 2026 and 14.7 per cent in 2027.

The report also projected Nigeria’s current account surplus at 7.0 per cent of Gross Domestic Product in 2026, compared with 4.8 per cent in 2025, before moderating to 4.4 per cent in 2027.

These projections suggest a stronger external position in 2026, although the expected decline in the surplus next year points to a moderation in external balances.

The IMF further warned that persistent geopolitical tensions, higher food and energy prices and tighter global financing conditions could undermine economic growth, particularly in developing countries.

It stated, “Risks are skewed to the downside,” identifying a prolonged Middle East conflict and further disruptions to energy infrastructure as potential threats to global economic stability.

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To cushion vulnerable households, the Fund recommended temporary and targeted financial support rather than broad measures that could undermine fiscal sustainability.

It said governments should “rely primarily on temporary, targeted income support for the most vulnerable,” while strengthening social protection systems to respond more effectively to future economic shocks.

PUNCH Online earlier reported that Nigeria recorded the world’s largest increase in the number of people living in multidimensional poverty, with an additional 17.9 million Nigerians falling into poverty between 2021 and 2024, according to the 2026 Global Multidimensional Poverty Index.

The report, published on Monday by the United Nations Development Programme and the Oxford Poverty and Human Development Initiative, showed that Nigeria experienced a reversal in poverty reduction after recording improvements between 2018 and 2021.

The findings placed Nigeria ahead of Afghanistan, which recorded an increase of 5.3 million poor people during its latest assessment period.

Source: punchng.com

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