Nigeria risks losing $1 billion in annual export earnings over EU rules – NEPC

The Nigerian Export Promotion Council (NEPC) has warned that the European Union's Deforestation Regulation (EUDR) could result in Nigeria losing over a billion dollars annually in export earnings. According to Benedict Hegbe, Regional Coordinator of NEPC, the regulation mandates exporters to prove that their commodities are deforestation-free and legally produced.

The affected commodities include cocoa, rubber, wood, oil palm, soya, coffee, cattle, and their products. Cocoa, being Nigeria's most exposed export, is particularly at risk, as it accounted for 89% of Nigeria's cocoa exports valued at 1.49 billion euros in 2024. Hegbe urged stakeholders to start preparations early, as large operators will have to comply with the regulation from December 30, 2026, while small and medium-sized operators will have until June 30, 2027.

The Customs Service is seen as a crucial checkpoint in ensuring compliance. The export module of the National Single Window, a one-stop platform for export documentation, is set to go live in November, with large operators expected to integrate by December 30, 2026, and smaller firms given until June 2027. Despite Nigeria's efforts to enhance agricultural traceability and prepare its cocoa industry for stricter EU standards, challenges remain, particularly in farm mapping.