Despite increasing local production in recent years and government efforts to boost processing, Nigeria’s cashew processors struggle to compete with global players owing to steep operating costs. ADVERTISEMENT 02Businessday.ng02Businessday.ng Ads by The industry’s woes are compounded by weak infrastructure and logistics bottlenecks, making it difficult for local processors to match prices offered by rivals in countries such as Vietnam, India, and the Ivory Coast. Nigeria’s cashew subsector has strong potential for growth and job creation if the value chain, especially local processing, can be tapped, experts say. “Nigeria’s processing capacity for cashew nuts is declining despite efforts to boost value addition,” said Daniel Gemana, managing director of Vertex Agro – a cashew processing firm. Read also: Nigeria earns $400m from cashew exports in 2025 “The reality is that more than 70 percent of the factories have shut down, even my own factory has not processed any nuts for two years,” Gemana said from his Suleja Farm in Niger State. According to him, only five cashew processors are currently operating in the country, which are mostly foreign-owned with a combined operating capacity of less than 18 percent. He said that unless there is a well-defined policy for processing cashew and other agricultural commodities, the country would continue to export jobs and lose revenue it would have generated through value addition. In 2025, Julius Berger, Nigeria’s construction giant, exited its cashew processing business after five years of failing to yield commercial traction. The business had reported a N2.4 billion loss from its diversification activities in the first half of 2025 before disposing of and leasing its cashew processing factory in September. Experts say the business’s exit from its agro-processing business highlights risks in the agricultural sector, often touted as the country’s growth engine but plagued by weak infrastructure, logistic weakness, policy inconsistency, and rising insecurity, among others. “The few cashew processors left are foreign owned and they could survive because they access cheap funding from their countries and access premium markets local processors can’t,” said Ojo Ajanaku, president of the National Cashew Association of Nigeria. “An average borrowing cost to any cashew processors by any bank in the country is a 30 percent interest rate, when processors in Ivory Coast and India obtain loans at a single digit. How can we be competitive?” he asked. Nigeria is the fourth largest grower of cashew nuts in Africa and sixth globally, with production estimated at 350,000 metric tons per annum, according to the Federal Ministry of Agriculture. The country earned $425 million from cashew exports in the first half of 2025, with over 90 percent exported raw, according to data from the Nigerian Export Promotion Council. Related News Sterling HoldCo confirms full recapitalisation of Sterling Bank, Alternative Bank Wike draws battle line in FCT polls, vows to block anti-Tinubu candidates Insider dealing: NGX cautions Sterling Holdco, Mutual Benefits, Austin Laz Ajanaku said that the government must provide a clear-cut policy direction as to what it intends to do in terms of industrialising the economy through the processing of agro commodities. He noted that Nigeria cannot develop without developing agriculture to include processing. Read also: Nigeria’s cashew boom hits as industry pushes for scale, value, forex gains Ivory Coast points way Ivory Coast, the world second largest grower of the nuts, embarked on an ambitious plan to boost local cashew nut processing from less than 10 to 50 percent by 2023. To do this, the government introduced a tax on the export of raw cashew nuts and supported processors struggling against competition from Asia to boost the percentage of the crop that gets processed in the country. Since the policy was introduced, raw cashew nuts processed locally in Ivory Coast have seen a substantial increase from 68,515 tons in 2018 to 345,000 tons in 2024, according to a 2025 World Bank note. “The government should introduce tax just like in Ivory Coast, where raw cashew nut exports are taxed and the money is used to support the value chains,” said Gemana. Season commences Nigeria’s cashew output for the 2025/26 season is expected to rise by at least five percent on favourable weather conditions, the National Cashew Association of Nigeria has said. Farmers link the increase in production to quality fruiting of cashew trees observed across major producing states in the country and the mild harmattan season that has helped flowers to bud and blossom well. “We are optimistic that this year’s output will surpass that of last year by at least five percent,” said Ajanaku. “The trees are fruiting well across key growing states,” he added. Debo Thomas, founder of Hastom Nigeria – a cashew business based in Ogbomosho, Oyo State, said the season looks promising for cashew farmers, noting that the harmattan has not been too harsh – making perfect for the flowers to bud. “This year looks promising for cashew. Output will increase and price will be attractive,” said Thomas. Currently, a metric ton of cashew sells between N1.8 million and N2 million at the farm gate, while a kilo sells for an average of N2,000.