Nigeria Warns of $1bn Export Loss if EU Deforestation Rules Not Met

At a seminar in Lagos on Tuesday, the Nigerian Export Promotion Council (NEPC) warned that the country could lose more than $1 billion in annual export earnings if exporters do not meet the European Union Deforestation Regulation (EUDR). The council said the loss would stem from a failure to prove that goods destined for the EU are deforestation‑free and legally produced, and that the required due‑diligence documentation is in place.

The EUDR covers a range of commodities that are important to Nigeria’s export portfolio. NEPC officials listed cocoa, rubber, wood, oil palm, soya, coffee, cattle and related products as the most affected. The regulation will apply to large operators from 30 December 2026 and to small and medium‑sized enterprises from 30 June 2027.

Cocoa is the commodity most exposed to the new rules. In 2024, Nigeria’s cocoa exports to the EU were valued at 1.49 billion euros, representing 89 % of the country’s total cocoa exports. Hegbe, the council’s regional coordinator, highlighted that only about half of the 350,000 smallholder cocoa plots have been geolocated, creating gaps that could hinder compliance.

To mitigate the risk, NEPC urged exporters to strengthen traceability and documentation systems. The council recommended using the Nigeria National Traceability System and working closely with farmers, cooperatives and exporters well before the fourth quarter of 2026 to secure the country’s export earnings.

Assistant Comptroller Oyama Ekok‑Oyama of the Nigeria Customs Service added that the EUDR was introduced to tackle global climate change. He noted that the EU’s objective is to cut greenhouse‑gas emissions and that the customs service plays a key role in ensuring that exported goods meet the new standards.

The council also announced that the export module of the National Single Window (NSW) will go live in November, providing a one‑stop platform for exporters to submit the required documentation and verify compliance with the EUDR.

In summary, Nigerian exporters are being urged to act quickly to meet the EU’s deforestation‑free requirements, or risk a significant loss of revenue and potential market access for key commodities such as cocoa.