Nigerian Cashew Growers Oppose Raw Export Ban Citing Risks To Five Million Local Livelihoods

Nigeria's cashew growers warn that an export ban on raw nuts could ruin 5 million livelihoods. NCAN calls for better financing instead of trade restrictions.

By: AXL Media

Published: Apr 28, 2026, 4:37 AM EDT

Source: Information for this report was sourced from The Nation Newspaper

Cashew Association Rejects Proposed Trade Restrictions

The National Cashew Association of Nigeria (NCAN) has issued a formal warning against a proposed ban on the exportation of raw cashew nuts, arguing that such a policy would severely disrupt the industry. Speaking following a meeting with the association’s Board of Trustees, President Joseph Ajanaku characterized the move as a threat to the economic survival of millions of rural workers. The association contends that preventing access to global markets would force farmers to bear the financial burden of local processing inefficiencies, effectively shrinking the income of smallholders who manage the bulk of national production.

Smallholder Vulnerability and High Operational Costs

According to Ajanaku, the majority of cashew cultivation in Nigeria is handled by farmers managing less than one hectare of land. These individuals are currently struggling with high production and transportation expenses, which already consume approximately 70 percent of their total revenue. The NCAN leadership pointed to a historical precedent in 2017, when a sharp decline in prices caused by market interference led farmers to cut down their cashew trees in frustration. The association fears that a new ban could trigger a similar domestic retreat, reversing recent progress made in revitalizing the sector.

Structural Hurdles Limiting Domestic Processing Capacity

Despite the desire for local value addition, the industry faces massive structural roadblocks that an export ban would not resolve. Nigerian processors are currently forced to borrow funds at interest rates hovering between 25 percent and 35 percent, while simultaneously battling expensive energy and a lack of adequate storage facilities. Ajanaku noted that while the harvest window is limited to a few months, processing is a year round endeavor that requires significant capital to maintain raw material stockpiles. Without addressing these underlying costs, the association believes that domestic firms will remain unable to absorb the total national output.