Nigeria’s Cashew Industry Targets One Million Tonnes Annual Production, 50% Local Processing

Nigeria’s cashew industry is setting its sights on a major transformation as the National Cashew Association of Nigeria (NCAN) targets increasing annual cashew production to one million metric tonnes while ensuring that at least 50 percent of the country’s output is processed locally.

The ambitious plan, announced by the association, seeks to reposition Nigeria as a leading player in the global cashew value chain by expanding production, encouraging local processing, and creating greater economic value from one of the country’s most important agricultural commodities.

Industry stakeholders believe that achieving these targets could significantly boost employment, improve farmers’ incomes, increase export earnings, and strengthen Nigeria’s drive toward economic diversification.

A Growing Industry with Untapped Potential

Nigeria is among Africa’s leading producers of raw cashew nuts, with production spread across several states including Kogi, Oyo, Kwara, Enugu, Benue, Anambra, Nasarawa, and Edo.

Despite the country’s strong production capacity, a large percentage of harvested cashew nuts are exported in their raw form for processing abroad. This means Nigeria captures only a fraction of the value generated from the global cashew industry, while countries with more advanced processing industries benefit from higher revenues and employment opportunities.

According to the National Cashew Association of Nigeria, increasing production while expanding domestic processing offers an opportunity to reverse this trend and retain more economic value within the country.

The association is now working toward raising annual production from current levels to one million metric tonnes over the coming years, while ensuring that at least half of the harvest is processed locally before export or domestic consumption.

Why Local Processing Matters

Processing agricultural commodities locally allows countries to generate significantly greater economic value than exporting raw products.

Instead of selling raw cashew nuts, local processing transforms them into higher value products such as edible kernels, roasted cashews, cashew butter, confectionery ingredients, and other food products that command higher prices in international markets.

Expanding local processing could also stimulate investment across Nigeria’s agricultural value chain by creating demand for processing facilities, packaging companies, transportation services, logistics providers, and export businesses.

In addition, increased domestic processing is expected to create thousands of jobs across farming communities, processing plants, warehousing, quality control, marketing, and international trade.

For rural communities where cashew farming serves as an important source of income, stronger local industries could improve livelihoods by creating more stable markets and increasing demand for quality produce.

Economic Benefits for Nigeria

The association believes that achieving its production and processing targets could contribute significantly to Nigeria’s broader economic development objectives.

Higher production would strengthen the country’s position in the global cashew market while increasing export opportunities.

Greater local processing would also help diversify Nigeria’s non oil exports, reducing dependence on crude oil revenues and supporting the government’s efforts to promote agriculture as a key driver of economic growth.

The development of a stronger domestic cashew industry could also encourage new investments in agro processing, manufacturing, storage infrastructure, research, and innovation.

By retaining more value within the country, Nigeria stands to generate higher export earnings while creating opportunities for entrepreneurs and small and medium sized enterprises operating across the agricultural value chain.

Opportunities for Farmers

Smallholder farmers remain the backbone of Nigeria’s cashew industry.

Improving production will require increased access to improved seedlings, modern farming practices, extension services, irrigation where necessary, and climate smart agricultural techniques that help improve yields while protecting natural resources.

The association also emphasizes the importance of strengthening farmer cooperatives, improving access to financing, and enhancing market linkages so producers can benefit from better prices and long term business opportunities.

Supporting farmers with training and modern agricultural practices will be critical to achieving sustainable production growth without compromising environmental sustainability.

Challenges Ahead

While the targets present significant opportunities, achieving them will require coordinated action from government agencies, private investors, development partners, financial institutions, and industry stakeholders.

One of the major challenges remains the limited number of processing facilities capable of handling large volumes of raw cashew nuts.

Expanding processing capacity will require substantial investment in modern equipment, reliable electricity, transportation infrastructure, storage facilities, and skilled manpower.

Access to affordable financing also remains a challenge for many processors and farmers seeking to expand production or modernize their operations.

In addition, improving quality standards and strengthening Nigeria’s competitiveness in international markets will require greater investment in certification, research, technology adoption, and value chain development.

Addressing these issues will be essential if Nigeria is to compete effectively with other major cashew producing countries.

A Boost for Sustainable Development

Beyond its economic benefits, expanding Nigeria’s cashew industry aligns with several sustainable development priorities.

Increased local processing can stimulate inclusive economic growth by creating decent jobs, particularly for women and young people who often participate in agricultural processing and related businesses.

Strengthening domestic value addition also supports responsible production and consumption by maximizing the economic potential of locally produced agricultural commodities before export.

The initiative further contributes to rural development by increasing opportunities for farmers, encouraging agribusiness investment, and strengthening local economies.

If implemented successfully, the strategy could serve as a model for how Nigeria can build more resilient agricultural value chains while promoting industrialization and sustainable economic growth.

Related: FG Reaffirms Commitment to Climate Action, Sustainable Development

Looking Ahead

The National Cashew Association of Nigeria’s target of producing one million metric tonnes of cashew annually while processing half of that output locally represents an ambitious vision for the future of one of the country’s most valuable agricultural commodities.

Achieving this goal will depend on sustained collaboration between government, the private sector, financial institutions, farmers, processors, and development partners.

With strategic investments in production, infrastructure, processing capacity, and farmer support, Nigeria has an opportunity to strengthen its position in the global cashew industry while creating jobs, boosting exports, and delivering greater value to communities across the country.

As efforts to diversify the economy continue, the cashew sector could become an increasingly important contributor to sustainable economic development, demonstrating how agricultural value addition can drive long term growth and shared prosperity.