Nigeria earned $450m from Cashew export annually ― FG

The Federal has disclosed that Nigeria earned over $450 million from the export of cashew sub-sector every year.

Speaking in Abuja, on Monday, at a Four (4) days African Cashew Alliance (ACA) Cashew Conference, the Minister of Industry, Trade and Investment, Otunba Richard Adebayo, said the government has continued to pursue deliberate policies to diversify the economy away from its over-dependence on the oil and gas sector.

“It is in this regard that Nigeria like other member countries of the African Cashew Alliance (ACA), has sustained its commitment to the provision of enabling environment and incentives for the development of the cashew value chain.

“These efforts have enhanced activities in the subsector, resulting in an increase in the commodity’s production in the country. Presently, some government incentives in the sector include; Zero per cent (0%) duty on all Agro-allied machines and equipment acquired for the production of cashew.

“Capital allowances are granted 100 per cent to companies involved in cashew production and processing; Agro-allied plant and equipment for cashew enjoy enhanced capital allowance of up to 50 per cent.

“Companies involved in the processing of cashew nuts are listed under pioneer industry; Companies involved in cashew processing enjoy income tax relief for three years which can be extended to 5years.”

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Represented by the Permanent Secretary, Dr Evelyn Ngige, the Minister further explained that “Companies involved in cashew production and processing are exempted from value-added tax. g. Agricultural machinery and equipment being imported for cashew processing enjoy import duty waiver.

“As of today, Nigeria produces about 260,000 metric tonnes of cashew nuts annually. Plans are ongoing to raise the annual production capacity of cashew nuts to well over 500,000 metric tonnes. Out of the current production figure of 260.000 metric tonnes, 180.000 metric tonnes are traded as raw cashew nuts. 15,000 metric tonnes are processed into cashew kernels and about 10,000 metric tonnes of the kernel are exported.

“There is a myriad of investment opportunities in the cashew sub-sector which could generate immense wealth and employment for the citizenry. Investment in the sector cuts across the cashew value chain from cultivation, harvesting, processing, storage, and marketing to exporting of either raw cashew nuts or partially processed products.

“Presently, Nigeria has 15 active processing plants with an estimated capacity of 55, 750 metric tonnes and 8 inactive plants with an estimated capacity of 8,500 metric tonnes. New investments are being planned for the development of 6 new plants, with an estimated capacity of 23.910 metric tonnes. This effort is expected to provide over a million direct and indirect employments for the teeming youths.”

He noted that cashew production is limited to only about 10 states out of the 36 states and the Federal Capital Territory. “The leading state in cashew nuts production in Kogi State. Other states involved in the production of cashew nuts include Abia.

“On the global stage, cashew nut production is projected to be about 730. 000 metric tonnes and the demand is estimated to be 4.500.000 metric tonnes. The main consuming countries are India and the United States of America. 55 per cent of the world’s cashew nut production is from countries in Africa, Europe, China and the Middle East, India and Vietnam are the leading countries in the processing of cashew nuts,” he stated.

Adebayo, therefore, called on Africa to remain at the forefront of the production of cashew nuts globally, “the benefits accruing from the commodity have continued to elude the continent. This is so because more than half of what is produced is exported in its primary form with no value addition. If this narrative does not change. African cashew-producing countries will continue to enjoy the least economic benefit from the commodity.”

On his part, the President of ACA, Tola Faseru, said Nigeria was among the five (5) top countries of cashew production globally.

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Nigeria earned $450m from Cashew export annually ― FG