NCAN: Foreign Cashew Operators Bypassing Nigerian Export Processes to Avoid FX Repatriation

• Stakeholders seek special agro-processing loans at single digit to boost value addition, local jobs, capital inflows

James Emejo in Abuja

President, National Cashew Association of Nigeria (NCAN), Dr. Ojo Joseph Ajanaku, yesterday disclosed that some foreigners operating in the country’s cashew industry, currently export the cash crop without completing relevant export processing documents.

Ajanaku alleged that these expatriates deliberately circumvent export due processes “because they do not want to repatriate the proceeds”, adding that this remained a major challenge in the sector.

He spoke at the opening of the 4th edition of the Nigeria Cashew Day, with the theme, “Unlocking the Full Potential of Nigeria’s Cashew Industry through Investment, Innovation and Global Trade” in Abuja.

He told THISDAY, “That is why we cannot get accurate figures of actual production. You hear figures of about $400 million coming into the country, but it could be much higher if we had the right structures in place to monitor what is really happening.

“What we have on record is only what passes through the official export process. We do not yet have the right statistical framework to accurately track production versus exports.

“That is why this administration is working on what is called the National Farmers’ Mapper. This will map all farmers across the country to determine what they produce, where the cashew goes, who exports it, and where it is exported to. This will enable the Bureau of Statistics to give accurate data on production and exports. So, yes, we are growing, but we can do much better.”

The association further expressed concern about the lack of significant value addition in cashew production and processing, appealing to state governors to get actively involved.

Ajanaku said talks are underway with authorities for access to a special agro-processing loans, which he claimed already exist, including the Central Bank intervention funds, Nigerian Commodity Development Fund, as well as export development facilities with NEXIM Bank, Bank of Industry (BoI), and the Bank of Agriculture (BoA).

He said, “These institutions should design products that allow processors to access loans at less than five per cent, ideally around three per cent. With that, they can compete globally.

“We have a major advantage: shipping from Nigeria to America takes less than one month, while Asian suppliers take at least one and a half months. We have every opportunity to benefit greatly, but development efforts must focus on agro-processing so we can increase production and processing capacity in this part of the world.”

He said, “The cashew industry is taking a new dimension. Back in 2001, there was speculation that production was less than 200,000 or 220,000 metric tonnes.

“But due to what we have been doing as an association—ensuring our cashew is well packaged and acceptable to the international market—we have grown significantly. Today, we have close to 600,000 metric tonnes of cashew being exported from the country.”

Also, President, Federation of Agricultural Commodity Associations of Nigeria (FACAN), Alhaji Sheriff Balogun, noted that cashew alone contributed over $400 million, with more than 300,000 tonnes exported—and generated about $450 million to the economy as non-oil exports peaked at $6.1 billion in 2025.

He said, “That is significant for a single commodity. We can do much more. With adequate planning over the next few years, we can scale production significantly. Currently, we process only 20–30 per cent of what we produce.

“Value addition is critical. If we add value, we could earn more than five times what we currently make and create more jobs for Nigeria’s youth population.

“Value addition means processing before export. But beyond that, it also means increasing domestic consumption. If others value our product, why shouldn’t we consume more of it ourselves?”

He said, “Nigeria’s domestic market is huge—with over 200 million people. Value addition means building more factories and processing to the final stage: roasting, packaging, producing cashew milk, cashew oil, and other products.

“There are challenges, but many are already being addressed. It is a work in progress, and we are hopeful that we will get to the promised land.”

On his part, President of the African Cashew Alliance (ACA), Mr. Ibrahim Sanfo, said to boost Africa’s consumption which is about one per cent, governments must be involved to take decisions that encourage processing in Africa.

He said, “If processing improves, we can process more for local consumption. Currently, Africa processes less than 10 per cent of its cashew and exports 80–90 per cent in raw form. Government support is essential—without it, we cannot solve this problem.

“When we compare Africa to Vietnam and India, our yields are still low—between 300 to 800 kilograms per hectare, compared to over 1.5 tonnes per hectare in India.

“We need funding to increase yield, support local processing, and bring technology into Africa. If we do this, we can compete effectively with countries like Vietnam and India.”