Cashew Crisis Looms: Farmers Reject Export Ban, Demand Cheap Loans as Industry Faces Internal Turmoil

 

Nigeria’s cashew industry has raised fresh concerns over proposed restrictions on the export of raw cashew nuts, warning that such a move could disrupt livelihoods, weaken production, and diminish the country’s competitiveness in the global market.

The warning was issued during a high-level stakeholders’ meeting in Abuja by the National Cashew Association of Nigeria, which urged policymakers to address structural bottlenecks before considering any export ban.

President of NCAN, Ojo Joseph Ajanaku, said the cashew value chain supports more than five million Nigerians, largely smallholder farmers cultivating less than one hectare of land. He warned that policies aimed at forcing local processing through export restrictions could further strain farmers already grappling with rising input and logistics costs.

According to Ajanaku, many farmers operate in remote areas with poor infrastructure, incurring high transportation expenses to move produce to collection centres and markets. He noted that after deducting these costs, most farmers are left with only a fraction of their earnings.

“Banning exports will only come at the expense of our farmers,” he said, stressing the need for policies that promote sustainability without undermining producers.

The challenges extend beyond farmers to processors, who face steep borrowing costs ranging between 25 and 35 percent. Ajanaku explained that such high interest rates make it difficult for processors to finance operations, store raw materials for year-round production, or compete with counterparts in countries where financing is more accessible.

Rather than impose export restrictions, NCAN advocated targeted interventions, including the provision of single-digit interest loans of between three and five percent for processors. The association argued that affordable financing would boost local processing capacity without distorting market prices for farmers.

Despite the sector’s difficulties, NCAN noted that relatively stable pricing in the current season demonstrates the benefits of a transparent, market-driven system. It expressed optimism that with the right reforms, Nigeria could strengthen its position in the global cashew trade.

Meanwhile, internal disputes within the association have added another layer of uncertainty to the industry.

 NCAN confirmed the suspension of two key officials a member of its Board of Trustees and the board’s secretary over allegations of misconduct and participation in unauthorized meetings.

The crisis deepened following a controversial letter to the Federal Ministry of Industry, Trade and Investment recognizing Ademola Adeshokan as president, despite his earlier expulsion by the same body.

Stakeholders have called on relevant government institutions to remain neutral and ensure due process in resolving the leadership tussle, emphasizing that the Board of Trustees does not have the authority to appoint a president.

To address the dispute, the association has constituted a five-member disciplinary committee, chaired by Ichape Mohammed, with Tunji Zakari serving as secretary. The committee has been given 90 days to investigate the matter and present its findings.

Ajanaku indicated that the crisis could ultimately be resolved through legal means, signaling the possibility of court action as tensions persist within the association.

The unfolding policy debate and leadership crisis underscore growing uncertainty in Nigeria’s cashew industry, with stakeholders warning that urgent, balanced reforms are needed to protect both farmers and processors while sustaining the sector’s long-term growth.