Onome Amuge
The global cashew market is set to experience a notable expansion, forecasted to swell from $7.7 billion in 2024 to $10.7 billion by 2033, at a compound annual growth rate of 3.7 percent, as projected by IMARC Group, a renowned management consulting firm.
Amid this growth trajectory, Nigeria has emerged as a country with immense potential, boasting abundant cashew resources and a notable local market. According to analysts, these factors, coupled with the country’s favourable climate, position Nigeria as a key player in the global cashew industry.
Recent projections have predicted that Nigeria’s cashew industry could bring in N792 billion from exporting approximately 400,000 tonnes of cashew nuts annually, with Vietnam and India as major importers of the Nigerian produce.
However, these projections risk being actualised, as industry experts have identified worrisome informal channels of cashew exports, leading to substantial losses in foreign exchange earnings and diminishing the economic impact of these exports.
The plight of Nigerian cashew farmers was recently brought to fore by the National Cashew Association of Nigeria (NCAN), who voiced their concerns over the rampant illicit cashew exports occurring in the country.
Joseph Ajanaku, the national president of NCAN,voiced his distress over the devastating trend of backdoor cashew exports, facilitated by corrupt government officials.
Ajanaku brought to light the enormous financial losses being incurred by Nigeria, as local cashews are smuggled out of the country without following the proper channels, causing the country to miss out on substantial revenue streams that would have benefited the nation.
Ajanaku, also leveled accusations at the Nigerian Customs Service, claiming that some officials are conspiring with foreign smugglers, enabling them to ship cashews illegally with complete impunity and without any fear of consequences.
Highlighting the ongoing attempts to undermine the Nigerian cashew industry, the NCAN president disclosed that there is a suspected international conspiracy to falsely portray Nigeria’s cashew production as a fraction of Ivory Coast’s production, citing that Nigeria’s annual cashew output is allegedly only 100,000 metric tonnes, compared to Ivory Coast’s alleged production of one million metric tonnes.
Ajanaku stated: “The only way we can block this illegal shipment of cashews from Nigeria is for us to get the information so that we will know where the goods are passing through, which we already know because they are using forwarders, and the forwarders are the people that we know. They give two kinds of bills: non-documented shipment and documented shipment, with two prices; how much it will cost to do non-documented and documented.
“We want President Bola Tinubu to take this matter seriously and block this kind of illegal cashew exports without documentation. If this is not done, Nigeria will continue to experience huge capital flights, which would affect the government’s ability to generate foreign exchange and threaten the cashew industry.
“The government should be serious about it and find a way of blocking it by strengthening the operations of the Nigerian Customs Service to ensure no agricultural commodity leaves Nigeria undocumented, and by so doing, we will know exactly what we are producing, and we will be able to repatriate all the money that is accrued to whatever is exported.”
Emphasising the gravity of the situation, the NCAN President urged the Nigerian Customs Service and the Department of State Security Service (DSS) to collaborate and root out the corrupt officials facilitating illicit cashew exports, demanding swift action to address the revenue loss and economic damage caused by these illegal activities, which he insisted were not limited to the cashew sector but had wider ramifications for Nigeria’s agriculture industry as a whole.
Nigeria’s potential in the global cashew market
Nigeria ranks among the top five largest cashew producers in Africa and in the top 15 globally, with annual production estimated at 240,000 metric tonnes.
A further breakdown of the export data indicated that Vietnam emerged as the largest importer of Nigerian cashews, receiving 70 percent of the total cashew nut exports from the country.
The Nigerian cashew industry continued its upward trajectory during the first three quarters of 2024, with exports reaching N257.5 billion.
Vietnam, the dominant importer of Nigerian cashews, sustained its position as the primary destination for these exports, accounting for 80 percent of the total value in the nine-month period.
David Afolabi, procurement manager at Fadel Agro Chemical Limited, elaborated on Nigeria’s stature in the industry, stating that the country is renowned for exporting high-quality raw cashew nuts, with an average yield of 48 kernels per nut.
Afolabi, in his assessment of the Nigerian cashew industry, pointed out that the liberalised market structure of the country’s cashew trade has given Nigeria an advantage in international price competitiveness, setting it apart from other significant African cashew suppliers.
He further praised the industry’s potential for female empowerment, highlighting that over 70 percent of the cashew workforce are women.
Expanding on Nigeria’s cashew advantages, he noted that the country’s geography is particularly favourable for growing high-quality cashew nuts with excellent peelability, making them easy to process.
Commenting on the growth potential of the Nigerian cashew industry, the agriculture expert noted that Nigeria is a rapidly expanding player in the global cashew market, with its production steadily increasing at an annual average of five percent.
He further posited that this growth trajectory is expected to continue upwards, with projections indicating that by 2030, Nigeria’s cashew production could reach 300,000 metric tonnes.
“Nigeria guarantees a reliable and sustainable supply base in their cashew offer. Our large production base with 19 producing states makes us the fourth largest producer of cashew nuts worldwide,” he stated.
Commenting on the lost opportunities in the Nigerian cashew industry, Friday Maghouga, an agro commodities exchange expert, stated that Nigeria’s focus on exporting raw cashew nuts is preventing the country from capturing the full economic potential of its abundant cashew resources.
Maghouga asserted that the switch from raw cashew nut exports to processed cashew kernels could result in an increase in profits, with processed cashew kernels commanding higher prices on international markets.
Maghouga further emphasised that this transition would not only boost the revenue of the industry, but also create job opportunities for Nigerians and stimulate economic growth.
