Nigeria’s cashew producers have warned that any move to ban the export of raw cashew nuts without addressing structural challenges could undermine farmers’ incomes, reduce production and weaken the country’s competitiveness in the global market.

‎The warning was issued in Abuja on Monday by the National Cashew Association of Nigeria (NCAN) during a review of developments in the sector and ongoing policy discussions on value addition and exports.

‎NCAN National President, Dr Ojo Joseph Ajanaku, said the cashew value chain supports more than five million Nigerians, most of them smallholder farmers cultivating less than one hectare of land.

‎He said policies aimed at discouraging raw cashew exports in favour of local processing must consider existing cost pressures facing farmers.

‎According to him, producers are already grappling with high transport costs, difficult terrain and limited access to infrastructure, which significantly reduce their earnings at farmgate.

‎“Many farmers spend heavily moving produce from remote farms to collection centres and markets. After production and logistics costs, what remains is very small,” Mr Ajanaku said.

‎He also raised concerns over high interest rates in the processing segment, saying commercial loans of 25 to 35 per cent make it difficult for processors to store raw materials and remain competitive globally.

‎Instead of export restrictions, the association called on the government to introduce targeted support for processors through single-digit loans of between 3 and 5 per cent, while allowing farmers to continue selling at market-determined prices.

‎NCAN also urged increased investment in improved seedlings, extension services, rural roads and security in farming communities, noting that insecurity in some producing areas has affected harvesting and access to farms.

‎The group said recent price stability in the sector reflects the benefits of a more open and transparent market, adding that Nigeria could strengthen its position in the global cashew trade with the right reforms.

‎“It will only be at the expense of our farmers if we ban export of raw cashew nut in Nigeria,” Mr Ajanaku said. “The best approach is to protect farmers while supporting processors with affordable financing.”

‎He added that the seasonal nature of cashew production also makes access to storage financing critical, as processors need to hold stocks for several months to meet year-round demand.

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