Cross River is the world’s fourth biggest cocoa producer with annual volumes of around 60,000 tonnes

Cross River State will soon begin implementation of the removal of the N5,000 non-compliance levy imposed per tonne of cocoa. The agreement to remove the levy came shortly after the cocoa merchants in Ikom, Cross River State took to the streets protesting against government agencies’ alleged refusal to issue evacuation papers for onward shipment of Cocoa.
While making the announcement to suspend the tariff, Commissioner for Agriculture, James Aniyo said the non-compliance levy has been suspended till the outcome of the stakeholders meeting. “We have instructed the Director of Produce Inspection to commence the immediate grading of Cocoa and allow merchants to lift their produce,” he said.
Earlier, the Cocoa Association of Nigeria (CAN) had challenged the tariff imposition in court and eventually got a judgment stopping the government from collecting the levy.
“The non-compliance levy was illegal and the association expects government to respect court judgment. We have paid the money for three years now but now that the court has decided on the matter we want government to stop the illegal levy,” said State CAN Chairman, Mr. Alphonsus Nana. The Non-Compliance Levy dates back to 2011, under the then Commissioner for Agriculture, Mr. Sandy Onor. Tariffs were imposed on merchants who refused to ship from the state port. The diminishing viability of the ports was cited as reason for this imposition.
“The State Commissioner for Agriculture should call his people to order to stop harassing the cocoa merchants in their bid to collect the money,” Mr Nana said.
The State Chairman of CAN feared that further delay in shipping the produce could affect output this season, adding that it could also cause the State Cocoa sector to collapse. Cocoa shipments from Cross River had been halted in the past week owing to disagreements over suspension of the levy.