Reviving Nigeria's cashew industry

The National Cashew Association of Nigeria (NCAN) has raised serious concerns regarding the disruptive activities of foreign middlemen within the country's cashew sector

Ademola Adesokan, NCAN's National President, criticised foreign traders for bypassing standard protocols and directly purchasing cashews from local farmers at inflated prices. These actions, Adesokan argues, are exploiting farmers and damaging the integrity of the industry.

Foreign buyers are taking advantage of local farmers by purchasing cashews at the farm gate without adhering to established international trade standards. Adesokan highlighted that these middlemen often export the produce without regard for proper regulatory oversight, further exacerbating the challenges facing Nigeria's cashew industry. “Our farmers are being exploited at the farm gate,” Adesokan said “The industry is in urgent need of structure to protect the integrity of the supply chain.”

The influx of unregulated foreign traders has led to severe economic hardship for farmers, many of whom are unable to secure fair prices for their crops. Adesokan emphasised that the absence of effective regulation is leaving farmers vulnerable and driving them into debt due to unstable market conditions.

Olarotimi Ayeka, NCAN’s National General Secretary, echoed these concerns, highlighting the significant financial losses suffered by the industry. Foreign traders, Ayeka explained, often bypass local processors and engage directly with farmers, disrupting the established cashew value chain. This practice not only damages local markets but also leads to the export of immature cashews, worsening the oversupply situation.

“These traders only operate during the peak season, buying massively in February and March, and then disappearing by April,” Ayeka explained. “When they leave, they often take the cashews with them, leaving local markets flooded with unsold stock.”

The crisis is compounded by internal divisions within NCAN itself, with some members reportedly colluding with foreign buyers for personal gain. This has hindered efforts to address the ongoing issues and stabilise the sector.

The disruption to the cashew industry has raised alarms about Nigeria’s future in the global market. Adesokan warned that if the government does not intervene soon, Nigeria risks losing its position as one of Africa's leading cashew exporters. “If the government does not take action to address these challenges, Nigeria risks losing its position as a leading cashew producer, and the entire industry will continue to suffer,” he concluded.