The National Cashew Association of Nigeria (NCAN) has raised concerns over widespread of farmers’ exploitation, disruption of the industry’s value chain, and unregulated foreign interference threatening the growth of Nigeria’s cashew sector.
At a stakeholders’ meeting in Abuja on Monday, NCAN National President, Ademola Adesokan, said farmers were being cheated at the farm gate due to weak structures in the industry.
“Our farm gates are being exploited. We need to put structures in place to protect the supply chain and involve agencies like customs and immigration to safeguard our farmers,” Adesokan stated.
NCAN’s General Secretary, Olarotimi Ayeka, explained that exporters and middlemen often bypass established value chains, dictating prices to farmers and weakening local traders.
He revealed that exporters usually buy cashew directly from farmers at cheaper rates and then abandon the market after only two months of trade, leaving farmers and traders stranded with unsold produce.
“They come in February and March, dictate prices, and by April, they move to other countries, leaving Nigeria’s cashew behind. This discourages both farmers and traders,” Ayeka said.
The association accused some local actors of colluding with foreign buyers, making reform efforts difficult.
NCAN has since appealed to the Federal Government to step in.
According to Ayeka, the government has set up an interim structure through the Ministries of Trade and Investment and Agriculture to restore order and accountability to the sector.
Ayeka also stressed the need for value addition to Nigeria’s cashew exports to create jobs and boost foreign exchange earnings.
“We are tired of exporting raw cashew nuts. We need to process locally, create jobs, and earn more forex for the country,” he said.
Nigeria is one of Africa’s largest producers of raw cashew nuts, with an annual output estimated at 300,000–500,000 metric tonnes, mostly from states such as Kogi, Enugu, Oyo, Kwara, and Niger.
The sector employs over 600,000 people and ranks as the nation’s third-largest non-oil export.
However, over 85 per cent of exports are raw nuts shipped mainly to India and Vietnam.
Nigeria’s installed processing capacity is about 25,000–35,000 tonnes annually, but only a fraction is utilised, leading to billions of dollars lost in value addition.
In 2022, the country exported 315,000 tonnes of raw cashew worth $252m, while in the first half of 2025, exports surged to $398.1m, representing an 81 per cent increase compared to the same period in 2024.
Stakeholders warn that without urgent regulation and investment in processing, foreign dominance could cripple Nigeria’s cashew industry.
“The idea that foreigners buy directly from our farm gates is not done anywhere else. If unchecked, they will destroy the industry and move to other African countries,” Ayeka warned.
Source: Punch
Image Credit: The Niche
