FG targets N52bn from cashew export

As an effort to increase exportation of non-oil commodities, the Federal Government has said efforts are being put in place to increase production of cashew nuts to 500,000 metric tons yearly to generate N52bn. Speaking at the at the 16th eedition of the aannual cconference of the African Cashew Alliance yesterday in Abuja, the Minister […]

As an effort to increase exportation of non-oil commodities, the Federal Government has said efforts are being put in place to increase production of cashew nuts to 500,000 metric tons yearly to generate N52bn.

Speaking at the at the 16th eedition of the aannual cconference of the African Cashew Alliance yesterday in Abuja, the Minister of Industry Trade and Investment, Otunba Richard Adeniyi, said with production now 260,000 metric ton, N26bn is generated from the commodity from which 180.000 metric tons are traded as raw cashew nuts, 15,000 tons processed into cashew kernels and about 10,000 metric tons of the kernel are exported.

Adeniyi, who was represented by the Permanent Secretary of ministry, Evelyn Ngige, said incentives are given to companies investing in the sector as they are considered as pioneering industries.

“Companies that are investing in the sector are currently enjoying zero per cent duty on all agro-allied machines and equipment; 100 percent capital allowances granted to companies involved in production and processing, income tax relief for three years which can be extended to 5years and exemption from value-added tax.”

He added that the sector has lots of investment opportunities that could generate wealth and employment in the cashew value chain from cultivation, harvesting, processing, storage, and marketing to exporting of either the raw cashew nuts or partially processed products.

“Presently, Nigeria has 15 active processing plants with an estimated capacity of 55,750 metric tons and 8 inactive plants with an estimated capacity of 8,500 metric tons. New investments are being planned for the development of 6 new plants, with an estimated capacity of 23,910 metric tons. This effort is expected to provide over a million direct and indirect employment opportunities for the teeming youths.”

He said with demand for cashew estimated to be 4.5m metric tons, Africa is not benefiting from the commodities as more than half of what is produced is exported in its primary form with no value addition.

He said if thee narrative does not change, African cashew-producing countries will continue to enjoy the least economic benefit from the commodity.

He further urged the aalliance to continue the advance of policies and strategies that will help strengthen efforts towards processing a larger portion of the commodity produced on the continent before being exported.