By Eneojo Herbert
As the world increasingly recognizes the potential of non-oil exports, Nigeria’s cashew industry stands out as a significant player. Cashew is not just a snack or an ingredient in confectionery; it is a multi-billion-dollar opportunity that can reposition the nation economically. Dr. Ojo Ajanaku, the National President of the National Cashew Association of Nigeria (NCAN), shares insights into the cashew sector and the upcoming 2025 National Cashew Day scheduled for January 24 in Lagos.
Challenges and Opportunities in 2024
Reflecting on the past year, Dr. Ajanaku acknowledges that 2024 was not without its hurdles. The fluctuating value of the Naira created economic instability, affecting cashew farmers and traders alike. Labor costs skyrocketed, with projections for daily harvest expenses exceeding farmers’ earnings fivefold. Meanwhile, the unstable exchange rate meant traders often bought at inflated costs, only to face rapid currency devaluation, resulting in significant financial losses.
Despite these challenges, Dr. Ajanaku believes that 2025 offers a fresh start. With the Naira showing signs of stability, cashew farmers and traders are optimistic about recovering from last year’s losses.
Impact of Climate Change and Production Output
Climate change has also taken a toll on cashew production. According to Dr. Ajanaku, 2024 saw lower yields compared to previous years. However, the ban on raw cashew exports in Benin Republic inadvertently boosted Nigeria’s production figures. Nigeria exports between 350,000 to 400,000 tonnes of cashew annually, and while the farming aspect may have underperformed, imports from neighboring Benin helped sustain the industry’s overall output.
Government Support and Policy Efforts
Cashew has been designated as one of Nigeria’s nine key non-oil crops with high foreign exchange potential. Dr. Ajanaku highlights efforts by NCAN to engage with the Federal Ministries of Industry, Agriculture, Trade, and Finance to amplify government support for the cashew sector.
Recent initiatives, such as Vice President Kashim Shettima’s plan to distribute 2 million cashew seedlings to northern farmers, signal growing government interest. NCAN is working closely with policymakers to expand cashew cultivation across the country and tap into its enormous export potential.
Major Challenges Facing Cashew Farmers
While cashew farming holds immense promise, farmers face numerous challenges. Dr. Ajanaku identifies access to funds as a primary hurdle. Establishing a cashew farm requires a three-year nurturing period, making it capital-intensive. To mitigate this, farmers are encouraged to intercrop with other crops for interim income, but financial support remains critical.
Preservation is another significant issue. Cashews require jute bags for optimal storage, which are not produced locally. Farmers rely on smuggled or recycled jute bags from Ghana, increasing costs and complicating logistics. Additionally, outdated harvesting methods deter young people from joining the industry. Modern equipment, such as harvesting tractors, is urgently needed to boost productivity and attract younger generations.
The Untapped Economic Potential of Cashew
The numbers speak for themselves. With current global market prices ranging between $1,700 and $2,000 per tonne, Nigeria’s cashew industry has the potential to generate over $3.4 billion annually from raw exports alone. However, the real economic value lies in processing and adding value to cashew products.
Dr. Ajanaku envisions a future where Nigeria processes its cashew nuts domestically, producing high-value items like Cashew Nut Shell Liquid (CNSL), cashew butter, syrup, oil, and cake. This could double or triple the industry’s annual revenue to over $10 billion.
“The eco-value of cashew is immense,” Dr. Ajanaku explains. “If Nigeria can harness the full potential of this crop, it could become a game-changer for our economy.”
Looking Ahead: The 2025 National Cashew Day
The 2025 National Cashew Day in Lagos promises to be a platform for stakeholders to strategize on how to overcome challenges and fully exploit the opportunities in the sector. As Nigeria seeks to diversify its economy, cashew remains a shining beacon of hope, offering a sustainable path to increased foreign exchange earnings and economic growth.
Dr. Ajanaku’s message is clear: with the right investment, government policies, and innovation, Nigeria’s cashew industry can thrive, transforming lives and contributing significantly to the nation’s economy. The time to act is now.
