STAKEHOLDERS in the cashew industry have lamented that the country is not maximising the potential of the crop due to low processing, high interest rate and high cost of seedlings and aging trees.
They said these factors have affected Nigeria’s in terms of job creation and revenue generation.
Nigeria, with production estimated at 350,000 metric tons annually, is the fourth largest grower of cashew nuts in Africa and sixth globally, currently processes less than 10 percent of its cashew nuts.
The stakeholders spoke at the third edition of Nigeria Cashew Day with the theme; ‘Catalysing Sustainability in Nigeria Cashew Industry’ in Lagos.
Dr. Ojo Ajanaku, National President, National Cashew Association of Nigeria (NCAN), said that Nigeria had lost its place in the comity of cashew producing nations when it moved from first position on the continent to fourth position.
According to him, “If we don’t encourage processing, there will be no full market for farmers to benefit. We are looking at a policy that will favour processing in the country and encourage farmers to grow more cashew,” he said.
“Processing is highly capital intensive. Cashew harvest lasts for just three months yearly and processors will have to buy and stock what they need for processing all through the year and this is highly capital intensive.
He commended the government for creating the domestic export warehouses to lessen the burden of interest on processors, while also calling on the government to critically look into expanding the cashew industry, as it will benefit the economy in general.
Babajide Sanwo-Olu, Lagos State Governor while speaking at the event said that with cashews having the potential to inject over $3.7 billion annually into the Nigerian economy, it is imperative to develop policies specifically tailored to the cashew industry.
Sanwo-Olu who was represented by Dr. Oluwarotimi Fashola, the Special Adviser to the Governor on Agriculture and Food Systems said that the policies should promote the holistic development of the cashew value chain, with a special focus on increasing production and significantly processing cashews into finished products within Nigeria.
He said that Nigeria must reclaim its position as the leading producer of cashew nuts in Africa, noting that in 2012, Nigeria was the continent’s largest producer, with an output of 836,500 metric tons of raw cashew nuts.
The governor said Lagos State, as the economic nerve center of Nigeria and a critical gateway for trade, plays an indispensable role in the cashew value chain.
“Our state is home to one of Africa’s busiest ports, which serves as the primary export channel for cashew kernels and raw cashew nuts to international markets. Additionally, our vibrant commercial ecosystem provides a robust platform for cashew traders, processors, and exporters to thrive.
“Beyond trade, Lagos offers vast opportunities for value addition through agro-processing and industrial development. This aligns with our administration’s focus on creating a conducive environment for businesses, particularly those in the agricultural sector, to flourish.
Dr. Jumoke Oduwole, Minister of Industry, Trade and Investment, while speaking at the event said that a worrying trend has remained the country’s inability to add value and export high volume of processed cashew kernel as against the continued exportation of raw cashew nuts.
Oduwole who was represented at the event by Akeredolu Toyin Johnson, an official in the Ministry said that the Nigeria cashew sub-sector, over the years, has remained one of the major contributors to the GDP of the economy.
She said that the sub-sector also has continued to impact the economy through its contribution in terms of jobs and wealth along the value chain.
“Cashew currently ranks third behind cocoa and sesame in terms of export value even in the face of huge untapped potentials. This, no doubt, explains the importance of the commodity to the country.
Oduwole pointed out that Nigeria is a major global player as far as cashew supplies is concerned and that the country has maintained a steady increase in production of the commodity, contributing immensely to the global supply chain.
“At the home front, cashew has sustainably created hundreds of thousands of jobs for Nigerians who are engaged at the various points of the value chain of the commodity, contributing to food security, job creation, foreign exchange earnings, economic diversification agenda, wealth creation for individuals, especially, women and youth and revenue to the government among others.
Akinsola Akeredolu-Ale, MD/CEO Lagos Commodities & Futures Exchange (LFCE) while speaking said that the LFCE provides a regulated environment for trading agricultural commodities, including cashews, stressing that LCFE is focused on developing futures contracts that help mitigate price volatility, providing a stable trading environment for cashew producers and exporters.
He said currently, Nigeria has the capacity to process between 25,000 to 35,000 tonnes of cashew nuts annually; but only about one-third of this capacity is utilised.
Akeredolu-Ale, also said that recent reports indicate that the cost of raw cashews has reached just over N1,725,000 per ton, primarily driven by increased booking rates and robust demand in global markets.
He said the production of cashews in key Indian states has decreased by about 20 percent compared to previous years, tightening supply lines and contributing to rising prices.
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