Executive Summary
Nigeria’s cashew industry is a vital component of its agricultural economy, positioning it as one of the top global producers of raw cashew nuts (RCN). In 2024, production is estimated at 450,000 to 500,000 tonnes, with exports dominating the market, reaching 468,601 tonnes valued at $351.6 million in 2023. The industry employs over 5 million people, with women comprising over 70%. Despite its strengths, challenges such as limited local processing capacity and reliance on raw exports persist. Opportunities lie in expanding processing infrastructure, leveraging government incentives, and meeting rising global demand for cashew products. The National Cashew Association of Nigeria (NCAN) projects that with adequate support, the industry could produce over 2 million tonnes annually, contributing $3.7 billion to the economy.
Production Overview
Nigeria ranks among the top five to six global cashew producers, with production estimates for 2024 ranging from 450,000 to 500,000 tonnes of RCN. This follows a reported production of over 350,000 tonnes in 2023, as noted by Tridge: Nigeria’s Surging Cashew Production. The industry has grown at a compound annual growth rate (CAGR) of approximately 10% over the past decade, driven by favorable tropical conditions and cultivation across 19 states, including Kogi, Enugu, Oyo, Anambra, and Benue. The cultivated area spans about 325,000 hectares, with yields averaging 1–2 tonnes per hectare. However, the IndexBox: Nigeria’s Cashew Nut Market Report 2025 notes a decline in average yield in 2024 compared to 2023, potentially due to adverse weather conditions.
Production Statistics
| Year | Production Estimate (tonnes, in-shell) | Notes |
|---|---|---|
| 2021 | ~240,000 | Based on NEPC: Cashew Nuts Profile |
| 2023 | ~350,000–470,000 | Varies by source; Tridge estimates >350,000 mt, WITS reports 468,601 mt exported |
| 2024 | ~450,000–500,000 | Estimated based on trends and projections |
Trade Dynamics
Exports
Nigeria is a major exporter of RCN, with exports in 2023 totaling 468,601 tonnes, valued at $351.6 million, according to WITS World Bank: Cashew Exports. Key destinations include Vietnam ($243 million, 249,353 tonnes), India ($78 million, 137,664 tonnes), the United States ($7 million, 1,418 tonnes), the Netherlands, and Germany. In the first 10 months of 2023, exports reached over 355,000 tonnes, indicating strong global demand. For 2024, export volumes are likely similar or slightly higher, with a 36% growth in shipment numbers reported by Volza: Cashew Exports. Export prices in March 2024 ranged from $2,549 to $2,672 per ton, as per IndexBox: Cashew Nut Price.
Imports
Imports of cashew nuts into Nigeria are minimal, as the country is a net exporter. The IndexBox: Nigeria’s Cashew Nut Market Report 2025 reports a small import volume in 2024, primarily from Benin and Kenya, with an average import price of $1,418 per ton in 2022. Imports are likely for processed or specialty cashew products, given Nigeria’s substantial domestic production.
Trade Statistics
| Year | Export Volume (tonnes) | Export Value (USD) | Major Destinations |
|---|---|---|---|
| 2021 | 172,130 | $180 million | Vietnam, India |
| 2023 | 468,601 | $351.6 million | Vietnam, India, USA |
| 2024 | ~450,000 (est.) | ~$360 million (est.) | Vietnam, India, USA |
Market Prices
Farmgate prices for RCN in Nigeria typically range from 400 to 800 Nigerian Naira per kilogram ($0.5–$1), based on Freshela Exporters: Cashew Nuts Market Price. Export prices are significantly higher, reflecting transportation and quality standards, with averages of $2,549 to $2,672 per ton in March 2024. Prices for cashew kernels are higher but less documented due to limited local processing. Global market trends and seasonal variations influence pricing, with high-quality RCN commanding premium prices.
Domestic Consumption
Domestic consumption of cashew nuts in Nigeria is relatively small, estimated at 50,000 tonnes annually, as most production is exported raw. The IndexBox: Nigeria’s Cashew Nut Market Report 2025 values the domestic market at $199 million in 2024, a significant decline from $681 million in 2012, indicating reduced local consumption or market value. The domestic kernel market is growing, driven by increasing consumer awareness of cashew products.
Processing Capacity
Nigeria’s cashew processing capacity is estimated at 25,000 to 35,000 tonnes of RCN annually, but only about one-third is utilized, processing approximately 8,000–12,000 tonnes. Recent developments include the Annie Glidden Commodities plant in Kwara, with a capacity of 5,000 tonnes per annum, as noted by Tridge: Nigeria’s Surging Cashew Production. Government incentives, such as three-to-five-year tax cuts for processing plants, aim to boost local processing.
Industry Players
The cashew sector is dominated by smallholder farmers, numbering around 25,000, alongside commercial plantations. The National Cashew Association of Nigeria (NCAN) regulates trade and promotes industry growth. Key exporters and processors include companies like Annie Glidden Commodities and Valency Limited, involved in initiatives like organic certification programs. Brokers licensed by NCAN facilitate deals between farmers and international buyers.
Challenges
- Limited Processing Capacity: Only 5–10% of cashews are processed locally, limiting value addition and economic benefits.
- Reliance on Raw Exports: Exporting raw cashews reduces potential revenue from processed products.
- Infrastructure Issues: Poor handling, storage, and transportation affect quality and marketability, costing an estimated N177 billion annually.
- Climate Risks: Adverse weather conditions impact yields, as noted in 2024 data.
Opportunities
- Global Demand: Rising demand for cashews in snacks and plant-based products offers export opportunities.
- Government Support: Initiatives like organic certification and tax incentives encourage processing and quality improvements.
- Value Addition: Developing products like cashew kernels, butter, and wine could enhance revenue.
- Job Creation: The industry’s potential to employ millions more with increased production and processing.
Government Policies and Initiatives
The Nigerian government supports the cashew industry through the Nigerian Export Promotion Council (NEPC) and initiatives like the organic cashew certification program, aiming to generate $500 million in exports, as per CRIN: Cashew Export. Tax cuts for processing plants and research by institutions like the Cocoa Research Institute of Nigeria (CRIN) aim to improve yields and quality.
Future Outlook
The NCAN projects that with adequate support, Nigeria could produce over 2 million tonnes of cashew annually, contributing $3.7 billion to the economy, as stated in Nairametrics: Cashew Industry Contribution. Achieving this requires significant investment in processing infrastructure, modern farming techniques, and value-added product development. By 2030, production is expected to reach at least 300,000 tonnes, with potential for further growth if challenges are addressed.
Historical Context
Cashew cultivation in Nigeria began in the 16th century, introduced by Portuguese explorers, with commercial production starting in the 1950s. Research and development since 1972 have introduced exotic genotypes and improved varieties, leading to a thirty-fold production increase from 1990 to 2012, as per Academic Journals: Cashew Research.
Comparative Analysis
Globally, Nigeria ranks among the top producers, alongside Côte d’Ivoire and India, contributing to 46% of global production in 2024. Côte d’Ivoire leads with over 970,000 tonnes in 2022, while Nigeria’s output is competitive but lags in processing capacity. The African cashew market is projected to grow from $0.85 billion in 2025 to $1.02 billion by 2030, with Nigeria playing a pivotal role.
Key Citations
- Nigeria’s Cashew Nut Market Report 2025 – Prices, Size, Forecast
- Nigeria’s Surging Cashew Production and Processing Potential
- WITS World Bank Cashew Exports Data 2023
- NEPC Cashew Industry Overview
- Freshela Exporters Cashew Nuts Market Price Nigeria
- NCAN President on Cashew Industry Economic Potential
- Volza Cashew Exports from Nigeria 2024
- IndexBox Cashew Nut Price Data Nigeria 2024
- CRIN FG to Generate $500m from Cashew Export
- NEPC Cashew Nuts Profile and Market Report
- Academic Journals Review on Cashew Research Nigeria
- AgroNigeria Stats on Nigeria Cashew Export
- Statista Export Volume of Unshelled Cashew Nuts Nigeria
- Statista Export Volume of Shelled Cashew Nuts Nigeria
