Ondo State PDP Calls for Suspension of Cocoa Levy Policy
The Ondo State chapter of the Peoples Democratic Party (PDP) has called on the state Governor, Lucky Aiyedatiwa, to suspend a recently introduced N250,000 per hectare levy on cocoa farmers operating within forest reserves. The party argues that the policy is economically irrational, environmentally unsound, and socially destructive.
In a statement released by the Director of Media and Public Communications, Wande Ajayi, the PDP expressed deep concern over the new policy. The statement highlighted that the levy, introduced under the guise of aligning with the European Union Deforestation Free Regulation (EUDR), is seen as an anti-people measure that exacerbates rural poverty and undermines the agrarian economy of Ondo State.
Ondo State is responsible for approximately 40% of Nigeria’s cocoa output, making the sector a critical component of the state’s non-oil economy. Across regions such as Idanre, Ifedore, Owo, and Akure, tens of thousands of smallholder farmers rely on cocoa cultivation for their livelihoods. However, the new directive compels each farmer to pay N150,000 for polygon mapping and an additional N100,000 for a five-year agro-forestry permit.
This financial burden is particularly heavy for smallholders who typically operate between one and three hectares. As a result, a typical farmer may be forced to pay between N250,000 and N750,000 upfront. This is especially challenging given the recent decline in farm-gate prices of cocoa, which have dropped from N14,000 to N6,000 per kilogram, and the surge in production costs due to inflation, fuel costs, and taxation.
The policy also requires a five-year permit for a crop that has an economic lifespan of over 40 years. This creates a sense of perpetual uncertainty for generational farmers. The PDP argues that this approach is not only economically irrational but also environmentally unsound and socially destructive.
If implemented as designed, the policy could push thousands of smallholders out of production, leading to increased rural unemployment and potentially encouraging further encroachment into unregulated forest areas. This outcome would contradict the environmental goals the government claims to uphold.
The PDP also criticized the administration for its dual standard approach, where small farmers are subjected to harsh fiscal measures while large-scale investors and politically connected firms enjoy generous access to land and government incentives. This discrepancy highlights the hypocrisy behind the administration’s sustainability rhetoric.
The statement pointed out that a ₦9 billion state-owned chocolate factory remains underutilized, symbolizing policy inconsistency and economic inertia. True alignment with the EUDR, according to the PDP, should focus on traceability rather than taxation. The European Union did not mandate the extortion of small farmers; instead, it emphasizes transparent land-use mapping, community participation, and state-backed sustainability support.
In countries like Ghana and Côte d’Ivoire, similar compliance programs are government-subsidised, not farmer-funded. The PDP urged the governor to immediately suspend the N250,000 levy pending a comprehensive stakeholder review. They also called for an inclusive dialogue involving farmer cooperatives, traditional rulers, and environmental experts to realign the policy.
Additionally, the PDP demanded a transparent breakdown of all proposed payments, mapping contracts, and beneficiaries to ensure public accountability. They advocated for a shared-cost sustainability model where the government supports mapping and reforestation rather than shifting the entire burden to peasant farmers.
If the administration fails to act swiftly, Ondo risks losing its status as Nigeria’s cocoa heartland. The farmers who sustain this economy must not be punished for trying to survive in a system rigged against them. Sustainability must not become a new word for suffering.
Key Concerns Raised by the PDP
- The N250,000 per hectare levy is seen as an anti-people measure that deepens rural poverty.
- The policy undermines the agrarian economy of Ondo State, which produces 40% of Nigeria’s cocoa output.
- Smallholder farmers face an impossible financial burden, with typical payments ranging from N250,000 to N750,000.
- The five-year permit for a 40-year crop creates perpetual uncertainty for generational farmers.
- Large-scale investors and politically connected firms continue to benefit from government incentives.
- The PDP calls for a suspension of the levy, inclusive dialogue, and a shared-cost sustainability model.