The National Cashew Association of Nigeria has called on the Federal Government to introduce incentives for cashew farmers and processors to help them improve production, increase profitability, and strengthen Nigeria’s position in the global cashew market.
The appeal was made in Abuja during the association’s Extraordinary General Meeting, where stakeholders reviewed developments in the industry and discussed challenges affecting the cashew value chain.
National President of the association, Joseph Ajanaku, said government intervention is needed to help farmers and processors manage rising production costs and remain competitive internationally.
He said the high cost of production, storage, processing, and logistics is putting pressure on farmers and processors, making it difficult for many businesses in the sector to make sustainable profits.
Ajanaku specifically called for special agro-processing loans for processors at single-digit interest rates, ranging from three to five per cent.
“Through such incentives, our processors can break even and compete favourably in the global market,” he said.
According to him, processors are currently struggling with commercial loan interest rates ranging between 25 percent and 35 percent, alongside rising energy costs that continue to affect processing operations.
He said the cashew industry currently supports more than five million jobs across Nigeria and warned that poorly designed policies could hurt farmers and create fewer opportunities in processing.
The association said Nigeria currently produces about 350,000 metric tonnes of cashew annually, with most farmers operating on less than one hectare of land.
Ajanaku said many of these smallholder farmers are already dealing with high transportation and production expenses, leaving them with limited earnings.
“Our farmers cannot be made to subsidise processing in disguise. The only incentive for production is price. If you shut them out from accessing competitive markets, you are reducing their earnings,” he said.
He recalled that low cashew prices in 2017 forced many farmers to cut down their trees due to poor returns, a situation the association later worked to reverse.
“Nigeria was once a global leader in cashew production, recording about 700,000 metric tonnes annually, but output has since declined to between 350,000 and 400,000 metric tonnes. “Meanwhile, countries like Côte d’Ivoire have surged ahead, producing over one million metric tonnes,” he said.
He stressed that while value addition remains important, policies must also protect farmers’ earnings and encourage increased production.
“If we want to process over 350,000 metric tonnes of cashew produced in Nigeria, we cannot employ more than 35,000 people. So, why do we want to displace five million workers to employ just 35,000?”
“The best approach is for government to support farmers to boost production, while also providing incentives for processors to compete globally,” he said.
He also highlighted transportation challenges faced by farmers, saying many travel between 5 and 15 kilometres to harvest their produce while paying additional labour costs.
Ajanaku urged the government to provide logistics support and targeted interventions that will help farmers reduce costs, improve productivity, and earn more from Nigeria’s growing cashew industry.
