Nigeria’s Cashew Industry Eyes Growth Beyond $400m Export Earnings

Nigeria’s cashew industry earned an estimated $400 million from exports in recent years, but industry leaders said the figure understated the sector’s true potential as production rises and structural gaps persisted across the value chain.

Stakeholders made the case at the 4th Nigeria Cashew Day in Abuja, where industry groups, government-linked institutions and regional partners convened to review progress and outline reforms aimed at boosting export earnings, value addition and local processing.

Speaking at the event, the national president of the National Cashew Association of Nigeria (NCAN), Dr. Ojo Adjanaku, said Nigeria has expanded raw cashew exports to nearly 600,000 metric tonnes annually, a sharp rise from earlier decades.

He noted, however, that official export earning figures do not fully capture actual output due to weak tracking and non-repatriation of export proceeds by some operators.

According to him, while official records reflected about $400 million in export receipts, actual earnings could be significantly higher if all exports were properly documented.

Adjanaku said NCAN ws developing a nationwide farmer and farm mapping system to close data gaps, improve traceability and support the National Bureau of Statistics (NBS) with more accurate production and export figures.

He added that Nigeria has the land, climate and market access to reclaim a leading global position in cashew production but must address weak statistics, low processing capacity and limited access to affordable financing.

He said, “As the umbrella body, the National Cashew Association of Nigeria represents farmers, producers, processors, marketers, and service providers, and our goal is to grow the industry’s capacity so Nigeria can reclaim its position as a global leader in cashew production.

“We have moved from exporting less than 200,000 metric tonnes years ago to close to 600,000 metric tonnes today, but the figures we see do not tell the full story. Some foreign buyers export our cashew without completing the Nigeria Export Proceeds forms, which means the earnings are not fully repatriated. If all proceeds were returned, the value would be far higher than the $400 million currently on record.

“One of our biggest challenges is the lack of accurate data, which is why the association is developing a national farmers’ mapping system. This will help us know what is produced, who is exporting, and where the cashew is going. With proper structure, improved statistics, and stronger value addition through local processing, Nigeria can do much better than where we are today.”

Concerns over value addition dominated discussions, with speakers warning that Nigeria continued to export the bulk of its cashew in raw form. Industry leaders called for targeted low-interest loans to support agro-processing, citing institutions such as the Central Bank of Nigeria, the Bank of Industry, the Bank of Agriculture and NEXIM Bank as critical financing partners.

They argued that expanded local processing could multiply export earnings, create jobs and strengthen domestic consumption.

The Federation of Agricultural Commodity Associations of Nigeria (FACAN) also raised concerns about market distortions, alleging that unregulated buying practices by foreign merchants disrupt pricing, discourage local traders and leave unsold stocks in the domestic market.

FACAN president, Sheriff Balogun, said recent government intervention to introduce interim oversight structures could help restore order, protect farmers and stabilise the trading season.

From a continental perspective, the African Cashew Alliance said Africa remains a major producer but a marginal consumer, processing less than 10 per cent of its cashew output while exporting up to 90 per cent in raw form.

The alliance president, Ibrahim Sanfo, stressed the need for supportive government policies, improved farm yields and technology transfer to enable Africa to compete more effectively with major processors such as India and Vietnam.

Despite the challenges, stakeholders expressed optimism that with better regulation, financing and processing capacity, Nigeria’s cashew exports could rise toward $1 billion within a few years, significantly expanding the sector’s contribution to non-oil exports.