Cashew processors cry for FG protection against shutdown

The Cashew Processors and Packagers Association of Nigeria (CAPPAN) has supported a recent call made by the umbrella body of the produce asking the Federal Government ( FG) to take pragmatic steps that will protect local market running to $1.507,000 on a daily basis.

This was said in a statement signed by the Executive Secretary, CAPPAN, Mr. Rufus Sunday Durodoye, and made available yesterday  to Food Farm News.

The press release pointed out the negative impact of the illegal activities of few locals and foreign saboteurs who are unrepentantly exporting raw cashew without conforming to repatriation returns rules to government as the Association hereby called on  Government to immediately embark on measure to control this for the business survival of cashew processors in Nigeria.

CAPPAN in the statement told the FG that its members had the processing capacity to accommodate the huge export of raw cashew nuts that daily left the shore of Nigeria to countries like Vietnam, India and China saying the act was a total denial to the development that could have economically accrued to the value chains of the produce.

The full text of the press release read thus "The Cashew Processors' and Packagers Association of Nigeria ( CAPPAN) has lent its voice to the cry of the president, National Cashew Association of Nigeria ( NCAN), Prince ( Hon) Ojo Ajanaku who has raised the issue of government checkmating saboteurs in the produce productivity as a matter of economic urgency 

CAPPAN, an umbrella body of all cashew processors in Nigeria is a home for over 20 cashew processing factories among -  are Vertex Agro Ltd, Nutslink Ltd, A.g Commodities, HSF Food Ltd, Akhibi Foods Ltd, Julius Berger, Outspan ( Olam), Valency, Sonata, Bba Ventures Ltd, Abod Success Inv. ltd, Tuaregs Nmt Agro ltd, Jubol Int. Services Ltd, Prudent Effsow, Twine Global Concept etc" 

" With a combined daily production capacity exceeding 1,094 tonnes of raw cashew nuts ( RCN), these factories have the installed capacity to produce 374 tons of cashew kernels daily, generating a market value of approximately $1,507,000 based on a price of $5.50 per kg.

To operate at full capacity, the factories required an annual supply of 328,000 tons of RCN as CAPPAN also provides direct employment for about 20,000 Nigerians and supports over 100,000 indirect. Cashew processors in Nigeria have collectively invested over $80m into the industry. These factories are Nigerian-owned with a smaller percentage being factories operated by foreign entities.

Nigeria produces between 250,000-320,000 tons of RCN annually, but over 80% is exported primarily to Vietnam, 15% to India, and 5% to China. Only about 50,000 tons are processed locally, leaving most factories severely underutilized and facing shutdown or relocation as an option. The reason for the shutdown or relocation option is confirmed by the president of NCAN on Sunday Vanguard, 16th February 2025. The imminent collapse of the cashew processing factories is as a result of the activities of some internal and foreign economic saboteurs/collaborators who are bent on sabotaging the efforts of Mr. President, Sen. Bola Ahmed Tinubu. They are aversed to the renewed hope initiative of President Tinubu which believes that our raw commodities must be processed locally to create wealth, generate income for Nigerians, and create employment etc.

" Methods adopted by the saboteurs:

-Purchase of raw cashew nut at an exorbitant price - as of today, a metric tonne of RCN is between N1,800,000 - N2,400,000 in Nigeria compared with other countries, where due to stringent rules, the prices are between N1,100,000 - N1,250,000 (Cote d ivoire as a parameter) as of today, a genuine exporter, knowing fully well his benchmark on the NXP or form ‘M’ cannot buy at that price because he repatriates his proceeds back to Nigeria.

-But these saboteurs can buy any raw commodities including RCN at any price and ‘export’ without repatriating their proceeds back to Nigeria thereby causing Nigeria a loss of revenue.

Implications:

-Nigeria is losing funds through this export activity of raw commodities.

-It has increased poverty and unemployment rates in the country

-Nigerian raw cashew processors cannot cope with the high price of raw cashew nuts, thereby relocation or shutdown is imminent - some had scaled down processing in the 2023/2024 seasons.

-Through this unpatriotic action Nigeria is exporting its wealth

-Cashew processors can only process for just only 20 days in a year thereby leaving the factory underutilized.

-Over 10,000 workers are facing imminent disengagement.

Prayers:

-The FG should ban the export of raw cashew nuts or impose a ban of $300 on every metric tonne

-The FG should  give a window for the cashew processors to buy and stock their warehouses with enough raw cashew nuts that will put the factory into activities all around the year

-That Nigerian cashew processors cannot survive or break even after adding the cost of processing with N1,800,000

-That the price of RCN should be between N1,150,000 - N1,250,000 as obtained in countries of best practice.

-That Nigerian processors should be given subsidies to subsidize the cost of production/processing.

Export of raw cashew nuts should be delayed till the beginning of June of every year.

-The FG should as a matter of urgency, discourage the export of raw commodities.

-The FG should set up a committee to visit these factories in Lagos, Abuja, kano, Enugu, etc, and confirm the state of the factories.

-FG should also consider the validation of the draft of the national cashew policy document to put an end to the ugly situation.

- FG should consider the establishment of a " national cashew project office to midwife the national cashew policy document"