By Simeon Shodimu
Nigeria’s cashew industry is facing renewed tension as farmers and industry leaders warn against what they describe as foreign-backed attempts to influence policies that could undermine local production and earnings. At the centre of the controversy is the debate over raw cashew exports, farmer profitability, and the future direction of one of the country’s major non-oil agricultural exports.
The National Cashew Association of Nigeria has raised alarm over what it described as growing interference by vested international interests in Nigeria’s cashew sector, warning that certain policy proposals could threaten farmers’ livelihoods and destabilise the industry.
Speaking after an extraordinary general meeting held at the conference room of the Federal Ministry of Industry, Trade and Investment in Abuja, the National President of the association, Dr. Ojo Ajanaku, alleged that foreign actors were attempting to influence the direction of the industry by creating divisions within the association.
According to him, the disagreement stemmed from his opposition to policies allegedly designed to restrict the export of raw cashew nuts — a move he argued would hurt smallholder farmers across the country.
Ajanaku stressed that most Nigerian cashew farmers cultivate less than one hectare of land and already battle rising production, transportation, and operational costs. He warned that limiting access to international markets would reduce farmers’ earnings and discourage production.
“Our farmers cannot be made to subsidise processing in disguise. The only incentive for production is price. If you shut them out from accessing competitive markets, you are reducing their earnings,” he stated.
The NCAN president recalled that a sharp decline in cashew prices in 2017 forced many farmers to cut down their cashew trees due to poor returns. He noted that the association had to embark on extensive interventions and sensitisation campaigns to revive confidence in the sector.
Nigeria, once regarded as one of the world’s leading cashew producers with annual production estimated at about 700,000 metric tonnes, has seen output decline significantly to between 350,000 and 400,000 metric tonnes. Meanwhile, neighbouring Côte d’Ivoire has expanded production beyond one million metric tonnes, emerging as a dominant force in the global cashew market.
While acknowledging the importance of local processing and value addition, Ajanaku maintained that such initiatives must directly improve farmers’ incomes and be implemented sustainably. He explained that processors are currently burdened by harsh operating conditions, including commercial loan interest rates ranging from 25 to 35 per cent, rising electricity tariffs, and high energy costs.
To strengthen the sector, he urged the Federal Government to introduce targeted incentives for agro-processors, including low-interest financing facilities between three and five per cent, which he said would improve competitiveness without transferring the burden to farmers.
He further noted that the cashew industry supports the livelihoods of more than five million Nigerians through farming, trading, logistics, and export activities. According to him, any restrictive policy capable of shrinking the export market could jeopardise millions of jobs while generating only limited opportunities in local processing.
Addressing reports of internal divisions within the association, Ajanaku dismissed claims of a major leadership crisis, describing recent disputes as disagreements over policy direction and governance issues.
He confirmed the suspension of the association’s Board Chairman, Sunday EzenduUzo-Echi, alongside the Board Secretary, Abraham Adeshida, while insisting that Ademola Adesokan remains expelled from the association over alleged attempts to undermine the leadership structure.
Despite the controversies, Ajanaku said the association remains focused on protecting farmers’ interests and strengthening the industry. He pointed to recent interventions, including a cashew procurement framework introduced in Kogi State, which he said has helped stabilise prices and reduce market manipulation allegedly driven by foreign buyers.
