A sweeping new regulation from the European Union is poised to reshape global commodity markets, and for Nigeria’s cocoa industry, the clock is ticking. The European Union Deforestation Regulation (EUDR), set to take effect by December 30th,2025, demands strict environmental and traceability standards for products entering the EU market, including cocoa, one of Nigeria’s most valuable exports.
While the regulation is aimed at combating deforestation, its implications go far beyond environmental goals. For Nigeria, the EUDR is both a challenge and a call to action: modernise or risk being shut out of one of the world’s largest trading blocs.
What the EUDR Requires
The EUDR introduces three core requirements for commodities like cocoa entering the EU:
• Deforestation-Free Production: No goods may come from land deforested after December 31, 2020
• Legal Compliance: All production must follow the local laws of the producing country
• Full Supply Chain Traceability: Products must be tracked down to the specific farm, verified through geolocation data and due diligence documentation
Failure to comply could mean rejection of shipments, trade bans, or reputational damage for Nigerian exports.
Nigeria’s Cocoa Industry: What’s at Stake
As a top-five global cocoa producer, Nigeria exports over 60% of its cocoa to the EU. The sector supports more than five million people across farming communities and contributes significantly to non-oil foreign exchange earnings. Non-compliance with the EUDR would put these livelihoods and revenues at risk.
Other countries in the region, particularly Ghana and Côte d’Ivoire, are already advancing their traceability systems. If Nigeria lags behind, its cocoa could become less attractive to international buyers.
Key Challenges to Compliance
Despite Nigeria’s agricultural potential, several structural and operational hurdles stand in the way of EUDR compliance:
• Limited Farm Mapping: Most smallholder farms are not GPS-mapped and lack formal land titles or digital records
• High Costs: The tools required for geolocation, certification, and audits are financially out of reach for many farmers
• Low Awareness: Many cocoa farmers are still unaware of the regulations and how they impact their future in global trade
• Policy Gaps: Nigeria’s legal and institutional frameworks are not yet fully aligned with international sustainability standards
Signs of Progress on the Ground
Despite the challenges, a growing number of stakeholders in Nigeria’s cocoa value chain are beginning to respond proactively:
• Farm Mapping Initiatives: Cooperatives and tech startups are rolling out GPS-based farm mapping solutions
• Sustainable Farming Practices: Training programs are teaching farmers methods like agroforestry and shade-grown cocoa to meet environmental standards
• Blockchain Pilots: Some regions are testing blockchain systems to build transparent, traceable supply chains from farm to export
• Certifications: More farmers are securing international certifications like Rainforest Alliance and Fairtrade
• Government Task Force: A National Task Force has been set up to coordinate compliance efforts, data collection, and financing strategies
The Way Forward: Policy Recommendations
To protect and grow its cocoa export potential, Nigeria must act swiftly. A coordinated, multi-tiered strategy is needed:
1. Regulatory Reforms
Update national laws to support land registration, traceability systems, and environmentally sound farming practices.
2. Support for Traceability Infrastructure
Provide subsidies or public-private funding models to equip smallholder farmers with GPS tools and digital platforms.
3. Farmer Education
Launch nationwide awareness campaigns and training programs in local languages to ensure farmers understand the EUDR requirements.
4. Market Access Incentives
Offer tax breaks or grants to cooperatives that pursue global certifications and ethical supply chains.
5. Centralised Cocoa Registry
Develop a national cocoa database with real-time geospatial monitoring to streamline compliance and reporting.
6. International Partnerships
Engage with the EU on technical assistance and ensure Nigeria’s systems are recognised in cross-border trade dialogues.
A Defining Moment for Nigerian Cocoa
The EUDR is more than a regulation; it’s a signal of where global trade is heading. It places sustainability and transparency at the centre of commodity value chains. For Nigeria, adapting to this new standard isn’t optional; it’s essential.
If stakeholders work together to modernise the cocoa industry, empower farmers, and align policies with global benchmarks, Nigeria can not only comply with the EUDR it can also lead Africa’s transition to sustainable agriculture.
Olatubosun is a Nigerian Agricultural Economist and international consultant specialising in sustainable farming, smallholder systems, and trade development. He advises cooperatives, governments, and institutions across West Africa on revenue optimisation and global market readiness.
