The National Cashew Association of Nigeria (NCAN) has renewed calls for massive investment in local cashew processing as a strategic step to reposition Nigeria in the global market, create jobs, and grow export revenues.
Ojo Ajanaku, President, National Cashew Association of Nigeria, (NCAN), said that the country currently processes less than 10 percent of its annual production of about 350,000 metric tons, a figure he described as grossly inadequate for a nation with such large production capacity.
“Our processors are only able to handle less than 10 percent of what we produce. This means the bulk of our raw cashew nuts are still being shipped to countries like India and Vietnam, where they are processed and resold at much higher value. That is not sustainable,” he said.
Ajanaku noted that only about 25 to 30 companies currently process up to 10 tons or more per day, while most small-scale processors are limited to producing for local consumption and cannot meet international export standards.
According to him, the high cost of financing remains a major constraint. “Cashew is harvested only for about three months in a year. But processors must store what they will process for the remaining nine months. With interest rates as high as 42 percent, it is practically impossible to break even,” he said.
He called on the Federal Government to introduce a special product paper for cashew, which would allow processors to access single-digit loans, enabling them to scale operations, invest in modern equipment, and retain more value within the country.
“If this is done, we can even import raw cashew from neighbouring African countries and process them here. Nigeria has the market, the land, and the capacity. We just need the right financing and policy support,” Ajanaku said.
“He said that the association is also focused on addressing the structural issues affecting production. One of the key challenges, according to him, is the aging of cashew trees, particularly in states like Kogi, Benue, and parts of the former Kwara State where the crop has long been cultivated.
“Our trees are old. Some of them were planted decades ago. These trees need to be rejuvenated or replaced,” he said.
To address this, he said the association is working with partners to establish cashew nursery farms nationwide, stressing that the initiative is promoting high-yield varieties, particularly the popular Ogbomosho variety, to ensure uniformity and improved productivity.
“We’ve submitted proposals to the Ministry of Agriculture to support this work. The idea is to set up more nursery farms, plant new trees, and graft the existing ones where necessary,” he said.
He stressed the need to develop a cashew processing ecosystem that can exploit the full potential of the crop. This includes by-products like cashew nut shell liquid (CNSL) and cashew oil, which are used in multiple industries.
“Many people don’t know that apart from the kernel, we can process cashew shells into CNSL used in pharmaceuticals and paints, and extract edible oil from the nut itself. These are products with high demand globally,” he explained.
He said that Nigeria risks losing out on the projected global cashew industry growth from $7.8 billion to $11.8 billion unless it steps up efforts to add value locally.
He addressed ongoing efforts to improve data collection within the sector, stating that the association is working with its local government chapters to register farmers into cooperative groups. This, he said, would allow for more accurate tracking of production volumes and farmer needs.
On security, Ajanaku acknowledged that while insecurity in some parts of the country affects farming generally, its impact on cashew has been minimal.
“Cashew is not like other crops where farmers need to be on the farm every day. Harvest is seasonal. But of course, insecurity is a concern, and we continue to engage with authorities to ensure safety,” he said.
Ajanaku further emphasised that the future of Nigeria’s cashew industry depends on processing.
