Farmers delay Nigeria cocoa shipments over disputed levies

Cocoa shipments from Nigeria’s second-largest grower Cross Rivers have halted in the past week owing to a disagreement over a levy imposed by the state government on exporters who did not use the state port to ship their beans, a trade body said.

Godwin Ukwu, spokesman for the Cocoa Association of Nigeria, said on Wednesday about 500 tonnes of cocoa due for export were held over the week after the local government refused to comply with a court order that it discontinue the duty.

The Cross Rivers state government has introduced a levy of 5,000 naira ($30.90) per tonne of cocoa on exporters who ship beans through ports other than the state’s Calabar seaport, which diminished its viability.

Taxes on exports including cocoa are usually collected by the federal government.

“The levy came into being in 2011 ... but we went to court to challenge it and we got a judgment restraining the government from collecting the money,” Ukwu said, noting that shipments will resume once the levy is cancelled.

Officials from the state government were not immediately available to comment.

Cocoa exports from Cross Rivers are usually destined for Europe.

Abundant rain and sunshine in the two main cocoa areas of Ondo state and Cross Rivers last month have helped the crop but there are fears that a lack of sun may allow diseases to spread hurt bean quality.

Ukwu said the logjam could affect output this season as farmers approach the main crop with export delays.Nigeria typically produces around 250,000 tonnes every year. Official figures for