Key players in Nigeria's cashew industry have issued a stark warning: a proposed federal ban on exporting raw cashew nuts could lead to widespread job losses, the collapse of farms, and severe damage to the country's agro-export economy.
Processors' Call for Ban Meets Fierce Opposition
The controversy stems from a recent call by the Cashew Processors and Packers Association of Nigeria (CAPPAN). The group, represented by Air Vice Marshal Tunde Awoyoola (rtd.), Managing Director of Nutslink Limited, argued that foreign buyers are dominating local markets and starving Nigerian processors of raw materials. They believe a ban on exporting raw nuts is the solution.
However, stakeholders from Kogi State, a major cashew-producing region, have strongly rejected this proposal. They argue it is a self-serving move that would devastate the industry's foundation.
Lack of Capacity and Dire Economic Consequences
Alhaji Makama Ademu, Chairman of the Kogi Cashew Dealers and Stakeholders Association, highlighted a critical flaw in the processors' logic. He stated that Nigeria lacks the processing capacity to handle more than five per cent of its annual cashew production.
"If the government bans raw cashew export, 95 per cent of what we produce will be left to rot," Ademu declared. He warned this would destroy farmers and eliminate three major segments of the value chain: sub-buyers, licensed buying agents, and merchants.
The immediate impact, according to Ademu, would be massive unemployment, particularly in rural areas. "This value chain employs farmers, women, rural youth and thousands of workers who dry, bag and prepare cashew. Once exports stop, these jobs disappear overnight," he said.
Accusations of a Self-Serving Agenda
The Kogi stakeholders accused CAPPAN of pushing a short-sighted and selfish agenda. Ademu claimed processors simply want prices to crash so they can buy raw materials cheaply. "How does a farmer survive on prices that do not even cover cost of production? Their agitation is selfish, short-term and myopic," he asserted.
Dr. Idrisu Yakubu, Vice Chairman of the association, dismissed claims that local processors are ready to absorb the national output. He provided a striking comparison: All the cashew processing factories in Nigeria combined cannot process what Kogi State produces in just one day of the harvest season.
"If they cannot handle one day’s output in a whole year, what happens to the remaining 364 days? Should farmers burn their harvest?" Yakubu questioned. He further alleged that some calling for the ban are "just politicians within the industry" without functional factories.
Broader Risks: Insecurity and Selective Targeting
The stakeholders warned of risks beyond economics. Yakubu cautioned that discouraging farmers could aggravate Nigeria's existing security challenges, potentially triggering new unrest in rural communities.
They also questioned why cashew was being singled out. Alhaji Mohammed Demo, Board of Trustees Chairman of the association, noted Nigeria freely exports other agro-products like cocoa, sesame, and ginger. "Have they banned the export of cocoa? Why cashew? It shows their agenda is not in the national interest," Ademu echoed.
Yakubu reminded everyone that exporters revived the cashew industry. "Before exporters came into the market, cashew had no value. Farmers were burning it on their farms. Killing that market now will reverse all progress made."
The group's unified message to the Federal Government is clear: reject the ban proposal. Instead, they urge investment in stable power, infrastructure, and incentives to help processors build genuine capacity over time. They insist that adopting CAPPAN's plan would throw thousands out of work and crash a thriving export market that brings vital foreign exchange into Nigeria.
