Nigerian cashew farmers, under the aegis of the National Cashew Association of Nigeria (NCAN), have appealed to the Federal Government to prioritise cashew processing as a strategic approach to enhancing Export earnings, increasing production output, and creating employment opportunities. During the third edition of the Nigeria Cashew Day in Lagos, the sector stakeholders emphasised the potential of cashew processing to drive sustainable growth. They argued that exporting raw cashew nuts deprives the country of significant economic benefits that could be realised through value addition.
Currently, Nigeria ranks fourth in cashew production on the African continent and sixth globally, producing an estimated 350,000 metric tons annually. Despite this, only a fraction of the nuts undergo processing within the country, leaving local farmers vulnerable to fluctuating global prices and missing out on higher earnings from processed products. Stakeholders at the event emphasised the urgency of addressing systemic challenges, such as high interest rates, ageing trees, and limited access to affordable seedlings, which continue to hinder the sector’s potential.
Challenges of limited processing and the push for policy support.
As a result, the lack of sufficient processing Infrastructure and policies tailored to the nut industry has contributed significantly to the nation’s diminished standing in global cashew production. Industry leaders explained that processing the nuts is capital-intensive, with processors required to purchase and store raw materials for year-round operations despite the short harvest season. The high cost of financing, with interest rates as steep as 42 percent, exacerbates the difficulty of sustaining processing activities and achieving profitability.
Efforts by the government, such as establishing domestic export warehouses, have been commended for easing some financial burdens on processors. However, stakeholders further called for additional interventions, including introducing a single-digit Interest Rate for processors to enable them to stockpile raw nuts throughout the year. A policy shift toward incentivising local processing would enhance the competitiveness of the country’s products in the global market and ensure that farmers have a stable and profitable market for their produce.
Cashew’s role in economic diversification and job creation.
Furthermore, the Federal Ministry of Industry, Trade, and Investment acknowledged the product’s significant contribution to Nigeria’s Gross Domestic Product (GDP), ranking it third after cocoa and Sesame in export value. The ministry reiterated its commitment to collaborating with stakeholders to create an environment conducive to investment across the sector value chain. The inability to add value to the products before export has been identified as a major impediment to maximising the industry’s potential. For instance, reports indicate that the export price of processed kernels from countries like India and Vietnam is about 3.5 times higher than what local farmers earn for semi-processed nuts.
Besides, the disparity grows even wider for fully processed and roasted products, underscoring the economic opportunities lost through reliance on raw nut exports. Recognising its potential to generate over $3.7 billion annually for the Nigerian economy, stakeholders have called for policies that promote the holistic development of the industry. Such policies should address bottlenecks in production and prioritise establishing processing facilities capable of adding value to the product within the country. By doing so, the country can retain a larger share of the wealth generated along the value chain while creating thousands of jobs for its growing population.
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Meanwhile, the National President of NCAN expressed concern over the decline in the country’s production and its fall from the top position in Africa to its current ranking. He called for concerted efforts to address the sector’s challenges and leverage its economic potential. Beyond its economic value, the nuts offer many health benefits, making them a sought-after commodity in global markets. Rich in fiber, plant protein, and essential nutrients such as magnesium, copper, and manganese, the nut supports heart, bone, and brain health. They also play a role in weight management, blood sugar control, and reducing inflammation, further boosting their appeal as a healthy snack.