The Cocoa Processors Association of Nigeria (COPAN) has expressed fears that its members may incur a loss of $5 million between now and March.  COPAN National Secretary, Felix Oladunjoye told newsmen in Lagos that the amount represents what his members will pay as duties on cocoa exports to Europe.

He said Federal Government’s refusal to endorse the European Partnership Agreement (EPA) would bring about the loss.  Oladunjoye said the endorsement of EPA by the government would have shielded Nigerian cocoa processors from paying duty fees on their exports.

  The European Union, few years ago, introduced the law which stipulates duty fees ranging between 4.2 per cent and 6.1 per cent on importation of cocoa butter, cocoa liquor and cocoa cake.
 
“This means that sales price of Nigerian cocoa products are now discounted against similar produce from Ghana, Cote d’Ivoire and Cameroon,” he said. 

Oladunjoye cited the example of Cocoa Butter export from Nigeria which will now be selling at $5,840 per ton as against $6,100 it will fetch other countries that have partially signed the agreement.

He appreciated government’s resolve to protect the local industries but said the non-signing of the agreement would have a serious effect on the processing sector. The association appealed to the government to cushion the harsh effects of its refusal to sign the EPA by restoring the payment of Export Expansion Grants (EEG) to its members.