Cashew Farmers Sound Alarm on Exploitation, Call for Market Regulation

The National Cashew Association of Nigeria (NCAN) has raised concerns over the growing exploitation of cashew farmers, disruption in the industry’s value chain, and unregulated foreign involvement in the country’s cashew market.

At a stakeholders’ meeting in Abuja on Monday, NCAN President Ademola Adesokan said the sector faces significant challenges at the farm gate, stressing the urgent need for structural reforms.

“Our farm gates are being exploited. We need a framework to protect farmers and bring customs and immigration into the system to regulate operations,” Adesokan said.

NCAN General Secretary Olarotimi Ayeka highlighted how exporters and middlemen have distorted the industry’s value chain.

“Most processors and exporters bypass local traders and deal directly with farmers, dictating prices that make it difficult for local traders to survive. For instance, they buy at N850,000 while local traders pay N900,000. After a brief trading period of two months, they leave, leaving farmers and traders discouraged,” Ayeka said.

He accused some individuals within the sector of colluding with foreign buyers to undermine reforms. “They engage with foreign buyers, including Indians, Lebanese, and Chinese, to profit personally, blocking efforts to regulate the industry,” he added.

The association has sought government intervention to restore order. “We requested that the federal government regulate the industry and implement reforms based on international best practices. Fortunately, an interim structure has been set up to run NCAN affairs in collaboration with relevant government agencies,” Ayeka revealed.

He also emphasized the importance of local value addition to boost employment and foreign exchange earnings. “Exporting raw cashew nuts without processing has limited benefits. We want value addition to create jobs and increase revenue for farmers and the nation,” Ayeka said.

Nigeria is among Africa’s top producers of raw cashew nuts, with annual output estimated between 300,000 and 500,000 metric tonnes. The crop is cultivated in states including Kogi, Enugu, Oyo, Kwara, and Niger, employing over 600,000 people across farming, processing, and trading.

Despite its potential, the industry faces structural challenges. About 85 per cent of Nigeria’s cashew exports are raw nuts, mostly shipped to India and Vietnam, while local processing capacity remains underutilized. In 2022, Nigeria exported over 315,000 tonnes of raw cashew worth $252 million, and in the first half of 2025, exports surged to $398.1 million, an 81 per cent increase from the same period in 2024.

Ayeka warned that unchecked foreign dominance could cripple the sector. “Countries that respect the value chain trade only for a maximum of two months. If unregulated, foreign buyers could destroy the industry and move on to other African countries,” he said.