Cashew Export Ban Bill Threatens Non-Oil FX Earnings — NCAN

Cashew farmers under the umbrella of the National Cashew Association of Nigeria (NCAN) have warned that the proposed bill seeking to ban the exportation of cashew nuts could undermine Nigeria’s non-oil foreign exchange earnings, deepen poverty among rural farmers, and weaken the country’s position in the global cashew market.

The association, through its leaders in Oyo and Kwara states, said the bill currently before the National Assembly risks repeating the long-standing policy failures associated with Nigeria’s crude oil industry, where the country exports raw materials but lacks sufficient domestic processing capacity.

Speaking with journalists on Monday Chairman of NCAN Farmers’ Wing, Mr SalamiTunde, alongside his Kwara State counterpart, Mr Omotosho Theophilus Tunde, said policy and legislative actions at the federal level should prioritise the broader economic interest of Nigerians, particularly at a time when the country is seeking to diversify away from oil dependence.

They explained that the farmers’ position followed resolutions reached at a meeting of concerned groups under the NCAN Farmers’ Wing held on December 17, 2025, in Ogbomosho, Oyo State, where participants unanimously rejected the proposed export ban, describing it as “anti-people” and inimical to national economic growth.

According to the farmers, banning cashew exports without first investing in domestic processing infrastructure would expose the sector to the same structural weaknesses that plague the oil industry.

They noted that Nigeria continues to export crude oil while importing refined petroleum products, despite having refineries on the ground.

“The sad story of Nigeria’s crude oil sector should serve as a lesson,” the farmers said. “We have crude oil in abundance and refineries on the ground, yet Nigerians suffer because of poor policy choices. We should not repeat this mistake with cashew.”

They argued that rather than imposing an outright ban, the Federal Government should establish at least five functional cashew processing factories across major producing states such as Oyo, Kwara, Kogi and other regions where raw cashew nuts are readily available.

Such an approach, they said, would strengthen value addition, create jobs and preserve export earnings.

The association also warned that the proposed legislation could have severe social consequences, particularly for youths who have found sustainable livelihoods in cashew farming and exportation amid rising unemployment and insecurity.

“The danger ahead is real,” the farmers cautioned. “Many young people who turned away from crime to embrace cashew farming and export business will be pushed back into hardship if this bill scales through.”

NCAN further noted that Nigerian cashew exporters are already contributing meaningfully to foreign exchange inflows, stressing that exporters regularly earn and repatriate dollars in line with global trade practices.

According to the association, the sector is currently thriving, with farmers enjoying favourable prices and improved incomes.

“In the cashew sector, Nigerians are making progress,” the leaders said. “Farmers are earning foreign exchange and supporting the economy. Why should government disrupt this progress?”

They also accused sponsors of the bill of pursuing narrow personal interests rather than the welfare of farmers and the national economy, warning that Nigeria could lose its share of the global cashew trade, just as it did in the shea nut sector, if exports are restricted without adequate processing capacity.

“As long as Nigeria continues to ban products without building capacity, it will lose revenue and markets,” the farmers said.

The association urged the Federal Government to focus instead on expanding cashew plantations, improving productivity, providing extension services and supporting farmers with access to finance, rather than introducing policies that could wipe out livelihoods.

It also called on the National Assembly to organise public hearings and broad stakeholder consultations before advancing the bill, urging lawmakers to study countries such as India and Pakistan, where sustained investment in processing capacity has enhanced global competitiveness.
Earlier, the National President of NCAN, Dr Ojo Ajanaku, had warned that millions of Nigerian farmers could be pushed into poverty if the cashew export ban becomes law.

He stressed that access to Special Agro-Processing Loans at single-digit interest rates was critical to growing the sector and attracting private investment into modern processing plants.

Ajanaku criticised what he described as the lack of structure and consultation surrounding the proposed bill, cautioning that discouraging exports without strengthening domestic processing would not only harm farmers’ livelihoods but also weaken Nigeria’s standing in the global non-oil export market.