Nigeria’s Cashew Industry Earns Over $400m, Stakeholders Call it Underperforming
- Nigeria’s cashew industry generated over $400 million in export earnings
- Stakeholders said Nigeria processes only a small portion of its cashew output locally
- They said increased value addition could significantly boost earnings and create jobs
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Nigeria’s cashew industry has generated over $400 million in export earnings, contributing significantly to the country’s non-oil revenue.
However, stakeholders say the sector still has room to deliver far greater economic value.
Source: Getty Images
This was disclosed by the President of the Federation of Agricultural Commodity Associations of Nigeria (FACAN), Sheriff Balogun, during the 4th Nigeria Cashew Day held in Abuja on Thursday, January 22, PUNCH reported.
According to Balogun, official data show consistent growth in Nigeria’s non-oil exports, largely driven by agricultural commodities such as cashew. He said non-oil exports rose from about $5 billion to $6.1 billion this year, with cashew playing a notable role.
Cashew sector holds strong potential
Balogun said cashew exports alone have earned the country over $400 million, with more than 300,000 tonnes exported. He noted that this performance highlights the strong potential of the sector, even though Nigeria has yet to fully maximise it.
He explained that Nigeria’s cashew industry is still operating below capacity, particularly in processing and value addition. According to him, only about 20 to 30 per cent of the cashew produced in the country is currently processed locally.
Balogun said improved planning and investment could significantly boost output and earnings in the coming years. He added that deeper value addition could increase revenue by more than five times while also creating employment opportunities.
FACAN urges boost in domestic cashew consumption
He also stressed the need to promote domestic consumption of cashew products to strengthen the local market. According to him, Nigeria’s large population presents a strong opportunity to grow internal demand alongside exports.
Balogun said value addition should go beyond basic processing, calling for more factories that can handle roasting, packaging and the production of derivative products such as cashew milk and cashew oil.
Source: Getty Images
Nigeria consumes under 1% of its cashew produce
Speaking at the event, President of the African Cashew Alliance, Ibrahim Sanfo, said Africa remains the world’s largest producer of cashew but consumes less than one per cent of its output. He said low processing capacity, estimated at under 10 per cent across the continent, remains a major challenge.
Sanfo added that most African countries export between 80 and 90 per cent of raw cashew and need stronger government support to expand local processing and consumption.
Meanwhile, the President of the National Cashew Association of Nigeria, Joseph Ajanaku, said Nigeria is working to reclaim its former position as a leading global cashew producer. He said the country has the land, climate and population needed to scale production and compete at the highest level globally.
Nigeria's untapped export products worth billions of dollars
Legit.ng earlier reported that Nigeria’s untapped earnings from commodities like cashew, cocoa and urea were worth $3.9 billion, according to a report by the International Trade Centre (ITC).
Although Nigeria is a net exporter of cocoa, the cash crop still held an unrealised export value of $749 million for the country.
The ITC also listed coffee alongside copper cathodes and frozen fish as the country’s most promising new export-growth products.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
