Group raises alarm over FG’s plan to ban export of cashew nuts, says it's recipe for economic disaster

Group raises alarm over FG’s plan to ban export of cashew nuts, says it’s recipe for economic disaster

Khalid ABARAHAM

The plan of the federal government to ban the exportation of cashew nut has been described as a clear recipe for economic disaster that would compound the level of poverty in the country.

This was the position of a group, the Concerned Group, which operates under the aegis of the National Cashew Association of Nigeria, (NCAN) (farmers wing), and contained in a letter addressed to the federal government, obtained by ogbomosoinsightonline.com.

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The letter, titled, “A call for reconsideration on proposed ban on exportation of cashew nuts by federal government,” expressed great worry that the proposal would be catastrophic to its members the most and so appealed to the federal government to disregard the bill already before the National Assembly.

“Attention of members of the Concerned Group has been drawn to a bill before the National Assembly whereby proposals were made for ban on exportation of cashew nuts. This proposal has inevitably generated disturbing concerns in many quarters, especially among of the stakeholders who will be the first line of victims should the bill scaled through.”

The group disclosed the letter was sequel to an emergency meeting of the association held December 17 in Ogbomoso, Oyo state, a key region for the growth and production of cashew in Nigeria. According to the letter the meeting resolved that the government be appealed to, to shelve the idea on the ground that the plan is ill-timed in view of the lack of processing capability of the nuts in the country.

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It asserted Nigeria’s cashew nut output is huge compared to the processing capacity available noting any ban on the export of the produce would cut jobs, cause spike in criminalities and deal a big blow to the non-oil export sectors.

“Members of the Concerned Group under the umbrella of National Cashew Association of Nigeria, (NCAN) (farmers Wing) held an emergency meeting on 17th December, 2025 at Ogbomosho, Oyo State, where the question of proposed ban on exportation of Cashew Nuts by the federal Government was discussed. Resolution at the meeting contained a call on the federal Government to shelve the idea of placing ban on exportation of Cashew Nuts. Members of the Concerned Group and all stakeholders viewed the proposed ban as not only ill-timed but also retrogressive in nature.

“The quantum of Cashew Nuts coming from Cashew Farms situate in places like Ogbomosho, Oke Ogun, Kogi State, Kwara State and several other places across the country far more supersede the processing capacity of Cashew nuts at the moment. Exportation of Cashew Nuts has become a big Industry generating thousands of job opportunities for the country’s teeming youths. While joblessness had forced many youths into criminalities, exportation of Cashew Nuts has provided a new life for our youths. Any ban on exportation of Cashew nuts would yet bring another blow on the Nation’s non-oil export sectors.”

It was further submitted that export of cashew nuts enables farmers and youths in the industry to earn foreign exchange, suggesting it is a major contributor to Nigeria’s GDP and that banning its export would disrupt the flow.

“Exportation of Cashew Nuts provides a legitimate platform for Nigerian youth and farmers to sell at favourable prices thereby earning dollars like their counter parts in other parts of the world.”

It stressed rather than ban exportation of cashew nut, government should support expansion of cashew plantation and introduce programmes to increase productivity while particularly hammering on investment in cashew processing factories to add value to the produce to generate greater revenue.

“Members of the Concerned Group are calling on the Federal Government and its various agencies, in particular, National Assembly not to yield to the call for ban on exportation of Cashew Nuts as same will have adverse effects on the Nation’s economy. Instead of outright ban, the Government should focus more on increasing Nation’s Output through plantation expansion and productivity enhancement. The group is also urging the government to improve on value and increase plantation base support for farmers to grow more Cashew and not to cripple them with policies that erase opportunities from the generality of the people. In addition, establishment of factories will go a long way to better the lots of all stakeholders in this sector of the Nation’s economy.”

The group also called on the National Assembly to conduct public hearings and wide consultations before advancing any bill that could negatively affect farmers, urging policymakers to study countries like India and Pakistan, where investment in processing capacity has strengthened global competitiveness.

“We also want to suggest that federal government should employ public hearing and broad consultations at the National Assembly before allowing any Bill to come before it for consideration. A study of existing models from India and Pakistan shows support and investment in processing capacity enhanced their competitiveness in the global market.”

Speaking with Ogbomoso Insight Mr. Aremu Adewale Ezekiel, CEO of Remad Gulf Investment Limited Ogbomoso, stated the call became imperative in order not to throw many stakeholders into joblessness. He emphasized that any such move would cause adverse effects to the Nigeria’s economy.

Aremu who is aspiring to lead NCAN at the national opined the proposal was borne out of selfishness of some people “who do not mean well for the country.”

He said Nigeria produces large volume of cashew nuts reeling out a data of the Export Promotion Council of Nigeria, which put it that Nigeria exported 236, 000 metric tons of cashew nuts valued at $339million in 2025 out of the about 400, 000 metric tons produced. He now averred, “After exporting 236, 000 metric tons, we had a surplus of 164, 000 MT, if we failed to export that quantity and added it to the 164, 000MT, what would have happened? Cashew nut export amplifies Nigeria’s GDP in no small measure and an outright ban without boosting our processing capacity would be a jeopardy. We have little or no zero processing plant in Nigeria, so, how do we utilize the surplus? Our plea should be seen from that perspective.”