The National Cashew Association of Nigeria (NCAN) has raised concerns about the unregulated activities of foreign middlemen that are disrupting the country’s cashew industry.
Ademola Adesokan, NCAN’s National President, pointed out that foreign traders, who bypass established protocols, are buying directly from local farmers at inflated prices, causing significant harm to the sector.
These foreign buyers, according to Adesokan, are exploiting farmers at the farm gate, exporting the produce without adhering to international trade standards.
He emphasized the need to introduce a more organized structure to safeguard the interests of Nigerian farmers, suggesting that involving customs and immigration could help regulate the system.
“Our farmers are being exploited at the farm gate,” Adesokan said. “The industry is in urgent need of structure to protect the integrity of the supply chain.”
The situation has caused widespread distress, with many farmers finding it increasingly difficult to sell their cashews at fair prices or make a meaningful profit.
Adesokan noted that the unstable market conditions were pushing farmers into debt, as they can no longer rely on consistent, competitive pricing.
He said that the absence of regulation and oversight is crippling the sector, leaving farmers vulnerable to exploitation.
Olarotimi Ayeka, NCAN’s National General Secretary, echoed these concerns, highlighting the loss of billions of naira and the damage to Nigeria’s relationships with international trade partners.
He attributed the disruption to foreign agents who often skip over local processors and directly engage with farmers, bypassing the usual channels of the cashew value chain.
This approach, he explained, distorts the market and damages the local trade structure.
Ayeka also described how the export of immature cashews and the short-term activities of foreign buyers, who purchase large quantities during peak season before abruptly leaving, has led to a surplus of unsold cashews and frustrated farmers.
“These traders only operate during the peak season, buying massively in February and March, and then disappearing by April,” Ayeka said. “When they leave, they often take the cashews with them, leaving local markets flooded with unsold stock.”
The negative impact of foreign interference extends beyond the trade itself. Ayeka revealed that some members of the NCAN have colluded with foreign buyers for personal gain, impeding efforts to reform the system and address the ongoing crisis.
He accused these individuals of blocking any efforts to stabilize the industry, contributing to a situation where the value chain is distorted and farmers are left at a disadvantage.
Amid these tensions, the leadership of NCAN recently underwent a contentious change.
Adesokan’s administration dismissed former National President Dr. Ojo Joseph Ajanaku and his executive council, accusing them of mishandling the crisis. Ajanaku, however, has rejected these claims, insisting that the allegations were unfounded and politically motivated.
He also stated that his leadership was properly elected and that the disagreements within NCAN should not be seen as a sign of division within the organization.
The instability within NCAN and the ongoing exploitation of farmers have raised alarms among experts and stakeholders in the cashew industry.
Without urgent government intervention, there are fears that Nigeria, once a leading cashew exporter in Africa, could lose its competitive edge to smaller neighboring nations. The cashew industry, which has provided employment to thousands and contributed significantly to Nigeria’s non-oil exports, now faces uncertain prospects.
Adesokan’s remarks serve as a warning that the continued decline of the sector could have severe consequences for both farmers and the nation.
“If the government does not take action to address these challenges, Nigeria risks losing its position as a leading cashew producer, and the entire industry will continue to suffer,” he said.
