Investors Alarmed As Nigeria Weighs Raw Cashew Export Ban
Proposed Raw Cashew Export Ban Raises Fears of ₦1.18trn Investor Losses
STAKEHOLDERS in Nigeria’s cashew industry have raised concerns that a proposed Federal Government ban on the export of raw cashew nuts could wipe out up to ₦1.18 trillion ($840 million) in expected earnings this year, threatening investments and livelihoods across the value chain.
Industry data indicate that Nigeria’s cashew export volume has surged to about 600,000 metric tonnes annually, with global prices for raw cashew climbing to $1,400 per metric tonne as of January 2026. Exporters warn that restricting access to the international market at this point could erode Nigeria’s estimated 7.95 per cent share of the global cashew trade.
Industry Pushback Against Export Restrictions
The National Cashew Association of Nigeria (NCAN) has emerged as a leading voice opposing the proposed ban, arguing that the country lacks the infrastructure and financing capacity required to absorb all raw cashew output locally.
Speaking at the 2026 cashew season flag-off and the association’s Annual General Meeting in Lagos, NCAN President Ademola Adesokan cautioned that an outright ban without adequate safeguards would expose farmers to price manipulation and exploitation at the farm gate.
“Banning raw exports without the necessary infrastructure and support systems will distort prices and harm farmers,” Adesokan said, adding that foreign interference at production points had already disrupted the sector.
Government Push for Value Addition
Representing the Federal Government, Mrs. Olumuyiwa Ajayi-Ade, Deputy Director at the Ministry of Trade, Industry and Investment, reaffirmed the administration’s commitment to shifting Nigeria from raw commodity exports to value-added production.
She explained that the government is advocating a minimum of 30 per cent local value addition on cashew exports to drive job creation, rural industrialisation and foreign exchange earnings.
“Despite our natural endowment and rising global demand, Nigeria continues to export raw cashew, leaving jobs and income for other countries,” she said, describing the policy shift as essential to economic diversification.
Balancing Industrialisation and Farmer Protection
While acknowledging the long-term benefits of value addition, industry players argue that the transition must be gradual and supported by investment in processing capacity, power supply, logistics and access to finance.
The Chief Executive Officer of the National Agricultural Land Development Authority (NALDA), Olusegun Adebayo, said the agency is supporting backward integration through the National Cashew Agro-industrial Processing initiative. He disclosed that NALDA has applied for 18,000 hectares in Kwara State to support processors with verified facilities.
According to Adebayo, existing cashew plantations in Ogun and Kwara states will also undergo tree replacement with improved seedlings to boost yields and reduce dependence on raw exports.
Uncertain Outlook
As global demand for cashew continues to grow—projected by Mordor Intelligence to reach $10.57 billion in 2026—stakeholders warn that poorly sequenced policy decisions could undermine Nigeria’s competitiveness rather than strengthen it.
