Nigeria risks $1bn export loss over EU deforestation rules —NEPC

THE Nigerian Export Promotion Council (NEPC) has warned that the country risks losing more than one billion dollars in annual export earnings if exporters fail to comply with the European Union Deforestation Regulation (EUDR).

According to the News Agency of Nigeria (NAN), Regional Coordinator of NEPC, Mr Benedict Hegbe, gave the warning at a seminar on the EUDR and the National Single Window (NSW), organised by the council on Tuesday in Lagos.

Hegbe said the regulation requires exporters to demonstrate that commodities exported to the EU are deforestation-free, legally produced and backed by proper due diligence documentation.

He listed the affected commodities as cocoa, rubber, wood, oil palm, soya, coffee, cattle and their derived products.

He said the regulation would apply to large operators from Dec. 30 and to small and medium-sized operators from June 30, 2027.

According to him, Nigeria’s cocoa exports face the greatest risk, with shipments to the EU valued at 1.49 billion euros in 2024, accounting for 89 per cent of the country’s cocoa exports.

He expressed concern over gaps in farm mapping, noting that only about half of Nigeria’s 350,000 smallholder cocoa plots had been geolocated.

Hegbe said rubber and wood exports also faced varying levels of risk, urging exporters to verify product classifications before shipment.

He advised exporters to strengthen traceability and documentation systems and leverage the Nigeria National Traceability System to meet the requirements.

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He also urged farmers, cooperatives and exporters to work together early to protect Nigeria’s export earnings in the fourth quarter of 2026.

Also speaking, the Chief Examiner, Lilypond Export Command of the Nigeria Customs Service, Assistant Comptroller Oyama Ekok-Oyama, said the EUDR was introduced to address global climate change concerns.

Ekok-Oyama added that the EU aimed to reduce greenhouse gas emissions and prevent trade in commodities linked to deforestation.

He explained that compliance involved more than forest protection, as it also covered labour rights and proper documentation.

He described the Customs Service as a key gatekeeper in ensuring compliance with export regulations.

The assistant comptroller said the export module of the NSW would go live in November to provide a one-stop platform for export documentation.

He added that large operators must integrate into the NSW system by Dec. 30, while smaller firms had until June 2027 to comply.

He urged exporters to improve record-keeping and prepare their systems ahead of the deadlines.