The Nigerian Federal Government recognizes the significant potential of cashew nut production and export as a means to diversify the country’s economy and increase revenue. As such, it has intensified its efforts by implementing various initiatives and policies to boost cashew nut production, improve the quality of the produce, and expand its export market.
Expectedly, these efforts have yielded notable results, with the country seeing up to a 5% increase in annual average production rate over the past few years. As of the fourth quarter of 2022, Nigeria produced about 260,000 metric tonnes of cashew nuts annually.
The increase in production volume has effectively positioned Nigeria as one of the leading players in the global cashew nut industry. In 2022, Nigeria’s raw cashew nuts export was valued at $252 million and accounted for 5.24% of the country’s non-oil export portfolio.
Reaffirming its position on improving the cashew export market in the country, the Nigerian government is putting the following systems in place to build the sector.
Yellow Cashew
A key initiative the Nigerian Federal Government is implementing involves supporting cashew farmers through agricultural extension services. For instance, through the NEPC, the government trained 200 cashew farmers in Oyo and Kogi states. It also paid for the implementation of organic certification for 100 cashew farms under the Export Expansion Facility Programme.
The training programs included tutorials on modern farming techniques, disease and pest control, and post-harvest management. By equipping farmers with the necessary knowledge and skills, the government aims to enhance productivity and improve the quality of cashew nuts produced in the country.
In addition to training programs, the government facilitates access to improved seedlings and inputs for cashew farmers. It partners with research institutions and agricultural agencies to develop high-yielding and disease-resistant cashew varieties. It then distributes these improved seedlings to farmers, enabling them to cultivate cashew trees with higher productivity and better resistance to diseases and pests. This initiative helps to address the issues of low yield from ageing trees.
A limiting factor in the Nigerian cashew nut production and distribution industry is that a more significant percentage of its outputs are exported from Nigeria in raw, unprocessed form. Processed cashew kernel only accounts for about 16% of the total export of the cashew sector. While this is not a significant problem, it reflects how value-addition efforts are largely lacking in the Nigerian cashew nut chain, like many other export products in the country.
The Nigerian Federal Government has earmarked resources for establishing cashew processing factories to address this issue. For example, the government has recently unveiled plans to build 6 new cashew nuts product plants nationwide.
In addition to that, the government is combating the poor infrastructure challenge by investing in rural road rehabilitation. Given that Nigeria relies heavily on road transport for goods transfer from production sites in rural communities to urban centres and ports, this is a crucial development that’ll improve logistics in the Nigerian cashew nut value chain.
The Nigerian Federal Government has also taken steps to address quality control and certification issues in the sector. One of its agencies, the Nigerian Agricultural Quarantine Service (NAQS), helps to ensure agricultural products, including cashew nuts, meet international quality standards. The NAQS conducts inspections, testing, and certification of cashew nuts before being exported.
These initiatives are aimed at reducing post-harvest losses and improving the cashew nut value chain. By encouraging value addition and local processing, the government seeks to create employment opportunities and increase the export earnings derived from cashew nuts.
However, challenges still exist that must be addressed to further enhance cashew nut production and export in Nigeria. These include the need for improved access to finance for cashew farmers, research and development for innovative farming techniques, and infrastructure development in rural areas. Additionally, there is a need for continued investment in processing facilities and value addition to maximizing the economic benefits derived from cashew nut production.
Without understating the government’s contributions to the development of Nigeria’s cashew nut export industry, the reality is the sector is still far from reaching its full potential. As a result, there’s a need for more intensive effort from private stakeholders to complement the government’s efforts to boost the production and distribution of the product within and outside the country.
Here at Sunbeth global concepts, we contribute to the growth of the Nigerian cashew nut value chain by championing sustainable cashew nut marketing within and outside the country. We act as a crucial link between small-scale farmers and international markets, facilitating market access for producers and ensuring they get good value for their products.
