Farmers Decry Revenue Losses as Foreign Buyers Fail to Declare Cashew Exports

News in brief:

-Industry leaders say undeclared cashew exports are costing Nigeria hundreds of millions of dollars in lost foreign exchange.

-Stakeholders are urging stronger enforcement, improved data systems and concessional financing to boost local processing.

Stakeholders in Nigeria’s cashew industry are raising fresh concerns over revenue leakages linked to the failure of some foreign buyers to accurately declare export proceeds, a practice they say is depriving the country of foreign exchange and distorting official production data.

The National President of the National Cashew Association of Nigeria (NCAN), Ojo Joseph Ajanaku, said some foreign operators export Nigerian cashew without completing the mandatory Nigeria Export Proceeds form, making it difficult for regulators to track volumes, repatriate earnings and generate reliable statistics.

He spoke on Thursday in Abuja at the 4th Cashew Day celebration, where industry players gathered to mark the opening of the new trading season.

Export Data Gaps Undermine FX Inflows

Ajanaku said weak compliance with export documentation requirements has continued to undermine transparency across the cashew value chain.

According to him, earlier estimates placed Nigeria’s cashew exports at less than 200,000 metric tonnes, but sustained interventions by the association have helped scale export volumes to nearly 600,000 metric tonnes through improved packaging standards and expanded market access.

He noted that official figures currently estimate annual cashew export earnings at about $400 million, but actual revenues could be significantly higher if all shipments were properly declared and export proceeds fully repatriated.

Government Rolls Out Cashew Farmers Mapping Initiative

To address the data gap, Ajanaku said the current administration has introduced a Cashew Farmers’ Mapper initiative designed to establish accurate nationwide records of production volumes, export destinations and exporters.

He said the programme would strengthen the capacity of the Bureau of Statistics to generate reliable data and support evidence-based policymaking.

“We are growing as an industry, but we can do much better with accurate data and full compliance,” he said.

Calls Grow for Concessional Financing to Boost Processing

On value addition, Ajanaku expressed concern over Nigeria’s limited cashew processing capacity and urged the government to prioritise agro-processing through targeted financing.

He called for the introduction of a Special Agro-Processing Loan that would provide processors with single-digit interest rate funding, similar in structure to existing Special Agro-Industrial Processing Zones.

He said funding windows already exist through Central Bank interventions, the Nigeria Export-Import Bank (NEXIM), the Bank of Industry (BOI) and the Bank of Agriculture (BOA), but access remains a challenge.

If processors can secure loans at below five or even ten per cent interest rates, he said, Nigerian firms would be better positioned to compete globally.

Africa Exports Raw Cashew Despite Global Leadership

Also speaking at the event, Ibrahim Sanfou, President of the African Cashew Alliance, said Africa remains the world’s largest producer of raw cashew but processes and consumes less than 10 per cent of its output.

He said between 80 and 90 per cent of Africa’s cashew production is exported in raw form, highlighting the need for consistent government policies to support local processing and domestic consumption.

Sanfou added that cashew yields across Africa remain well below those of leading producers such as India and Vietnam, averaging between 300 and 800 kilograms per hectare, compared with more than 1.5 tonnes per hectare in India.

He called for increased investment in research, technology and financing to improve productivity.

New Trading Season Opens Amid Coordination Push

In his remarks, Sherif Balogun, President of the Federation of Agricultural Commodity Associations of Nigeria, said the conference marked the official opening of the new cashew trading season.

He said stronger coordination among farmers, processors, exporters and regulators would be critical to addressing revenue losses and unlocking the sector’s full economic potential.