NCAN Raises Alarm Over Export Malpractice, Pushes for Value Addition in Cashew Sector

 

The President of the National Cashew Association of Nigeria (NCAN), Dr Ojo Joseph Ajanaku, has raised concerns over alleged export malpractice by some foreign operators in Nigeria’s cashew industry, accusing them of bypassing required export documentation processes to avoid repatriating export proceeds.

Ajanaku said the practice has continued to distort official data on cashew production and exports, noting that government figures only reflect volumes that pass through formal export channels.

According to him, the lack of accurate data has made it difficult to properly assess the true contribution of the cashew sector to the national economy. He disclosed that the Federal Government is addressing the challenge through the development of a National Farmers’ Mapper, which will track farmers, production volumes, export routes and destinations.

He explained that the initiative would enable the Bureau of Statistics to generate more reliable data on cashew production and exports, improve sector planning and strengthen regulatory oversight.

Ajanaku also expressed concern over the low level of value addition in Nigeria’s cashew industry, urging state governors to take more proactive roles in promoting processing and industrialisation at sub-national levels.

He revealed that discussions are ongoing with key financial institutions, including the Central Bank of Nigeria (CBN), NEXIM Bank, Bank of Industry (BoI) and Bank of Agriculture (BoA), to provide processors with access to low-interest agro-processing loans at rates of about three to five per cent.

On sector growth, Ajanaku noted that Nigeria’s cashew exports have recorded significant expansion over the years, rising from less than 220,000 metric tonnes in the early 2000s to nearly 600,000 metric tonnes currently.

Corroborating the economic impact of the crop, President of the Federation of Agricultural Commodity Associations of Nigeria (FACAN), Alhaji Sheriff Balogun said cashew alone contributed over $400 million in non-oil export earnings, with more than 300,000 tonnes exported and about  $450 million generated for the economy.

Balogun, however, lamented that Nigeria currently processes only  20 to 30 per cent of its cashew output, stressing that increased value addition could raise earnings by more than five times while creating significant employment opportunities for the country’s youth population.

Also speaking, President of the African Cashew Alliance (ACA), Mr Ibrahim Sanfo, said Africa processes less than 10 per cent of its cashew production, exporting about 80 to 90 per cent in raw form.

Sanfo called for stronger government intervention to improve yields, expand local processing capacity and deploy modern technology, noting that Africa must close the productivity gap with global leaders such as Vietnam and India to remain competitive in the global cashew market.