News in Brief:
– Governor Sanwo-Olu emphasised the significant economic potential of the Nigerian cashew industry, stating it could generate over $3.7 billion annually.
– The Federal Government pledged its support for the sector, focusing on boosting domestic processing and supporting smallholder farmers to increase production and enhance value addition.
Governor Babajide Sanwo-Olu of Lagos State has declared that the Nigerian cashew industry holds the potential to generate over $3.7 billion annually for the nation’s economy.
He made this known during the National Cashew Day/Flag-off Ceremony organised by the National Cashew Association of Nigeria (NCAN) in Lagos.
Represented by his Special Adviser on Agriculture and Food Systems, Dr Rotimi Fashola, Governor Sanwo-Olu stressed the need for policies that prioritize the development of the entire cashew value chain within Nigeria.
“With cashew having the potential to inject over $3.7 billion yearly into the Nigerian economy, it is imperative to develop policies specifically tailored to the industry,” Governor Sanwo-Olu stated.
Economic losses due to raw cashew exports
Additionally, he highlighted the significant economic losses incurred due to the current export of raw cashews, which limits the value-addition benefits to the Nigerian economy.
“Reports showed that the export price of cashew kernels from India and Vietnam to the EU and America is roughly 3.5 times higher than that of Nigerian cashew farmers after semi-processing. When roasted in Europe or America, the value increases to about 8.5 times more than the farm gate price in Nigeria. This represents a loss of wealth and opportunities, as the benefits of value addition are transferred abroad rather than retained locally,” he explained.
Also, the Governor stressed the importance of increased production and significant processing within Nigeria to maximise the economic benefits of the cashew industry.
Federal government support
In the meantime, the Federal Ministry of Industry, Trade and Investment has pledged its support for the Nigerian cashew industry, reiterating the need for a robust sector.
Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, represented by Akeredolu Toyin Johnson, stated that the ministry is committed to creating the right environment and platforms to spur investment across the cashew value chain.
This move is expected to create market linkages and provide technical support for strengthening domestic production, processing, and marketing capabilities.
Oduwole highlighted the ministry’s focus on supporting smallholder farmers through capacity building, market access, and value-addition initiatives.
Reversing the decline
The National President of NCAN, Dr Ojo Ajanaku, expressed concern over the decline in Nigeria’s cashew production and called for urgent measures to revive the sector.
“The country, once Africa’s leading cashew producer, has drastically dropped in the global rankings,” Dr Ajanaku stated.
He highlighted the importance of increasing production and promoting high-yielding cashew varieties. NCAN is currently working with development partners to establish cashew nurseries across the country to support increased production, he added.
Overall, the Nigerian cashew industry, while possessing significant economic potential, faces challenges. The country primarily exports raw cashews, with an average 48 kernel yield out-turn.
However, limited domestic processing hinders value addition and higher export earnings. The average farm-gate price for Nigerian cashews is significantly lower compared to processed kernels exported by countries like India and Vietnam. Key cashew-producing regions include Kogi, Ondo, and Ogun states.
