The risk of large-scale job losses if the export of cashew nuts in Nigeria is banned

Stakeholders in the cashew value chain in Nigeria warn that the country could face a wave of large-scale unemployment, a collapse in agricultural production, and a severe decline in agricultural exports if the Federal Government approves the proposal by the Cashew Processors and Packagers Association of Nigeria (CAPPAN) to ban the export of raw cashew nuts.

Earlier, CAPPAN had suggested that foreign buyers were "hoarding" raw shea nuts directly at the farms, causing local processing facilities to lack raw materials, thereby calling for an export ban. However, the President of the Association of Shea Traders and Allied Industries in Kogi State, Alhaji Makama Ademu, believed this proposal was unnecessary and warned that Nigeria only has the capacity to process less than 5% of the total annual shea nut production. Mr. Ademu emphasized: "If the Government bans the export of raw shea nuts, 95% of the production will be left to waste and spoil. We do not have sufficient processing capacity, even for a small fraction of the national production. This will destroy farmers, break the value chain, and wipe out three crucial links including junior buyers, licensed buying agents, and traders." According to him, the ban would immediately cause widespread unemployment, especially in rural areas. "This value chain provides jobs for farmers, women, ...