INVESTMENT OPPORTUNITY

INTRODUCTION:

In Nigeria, Cashew (Anacardium occidentale L.), is increasing in its importance as an export oriented cash crop since 1990’s. It is becoming an important source of non-oil export earnings (estimated to represent 10% GDP based on export data of 2014). Cashew has become a commercial crop in Nigeria and is cultivated in 27 States of Nigeria, including the Federal Capital Territory (FCT). The major producing states includes Kogi, Kwara, Abia, Akwa-Ibom, Anambra, Ogun, Ondo, Nassarawa, Oyo, Edo, Ekiti, Enugu, Benue, Cross Rivers, Delta, Ebonyi, Imo and the marginal producing states includes Adamawa, Borno, Gombe, Kaduna, Kebbi, Osun, Plateau, Taraba, Zamfara and FCT.

CURRENT STATUS

 

•National Output : 121,000 mt

•Actual area cultivated : 100,000 ha

•Average yield : 350 kg/ha

•Potential area cultivatable : 350,000 ha

INVESTMENT WINDOW IN CASHEW

Cashew has a variety of uses. Cashew apple, nuts and its by-products are used as follows.

•Investment in cashew apple fruit processing: Currently Brazil is one of the biggest processors of cashew apples. There are currently a few juice extraction and processing plants dozens of small bottle companies. This is a large industry that is capable of employing thousands. Nigeria can establish itself as a competitor in this market, given the abundance of raw materials that are widely available as inputs. There are several different types of products that can be derived from the apple are.

•Juice products: fermented, pulp, clarified, concentrated, sodas and syrup etc.

•Tertiary processing: Ice cream, candy, spices and animal feed. 

•Cashew a good source of foreign exchange when exported because;

•The nuts are heavily consumed in temperate countries, they are either prepared as delicacies or used in confectionery. It therefore has a lot of export market potentials.     

•Cashew nut which is seed is of high commercial value and to extract these seed the shell must be removed. The shell contain skin blistering oil which is highly valued for it’s many industrial application, these oil when extracted contains oleic acid which is used as medicinal, wood protector and a source of resin.

MARKET POTENTIAL FOR INVESTMENT ACROSS CASHEW VALUE CHAIN

Beverage industry, Pharmaceutical, cosmetic, chemicals, agro-allied, animal feeds, construction companies and the confectionery and bakery industry are among the major consumers of processed cashew.

JOB CREATION POTENTIAL

About 50,000 additional job can be created along the cashew value chain through:

•Production (New planting and Rehabilitation of aging plantation)

•Harvest and post harvest handling (particularly youth and women)

•Processing of cashew apple juice, cashew nuts, tertiary processing (Ice cream, candy, spices and animal feed) and its by product (Cashew Nut Shell Liquid CNSL) is capable of employing thousands.

•Directly and indirectly employ thousands through export market potentials

BUSINESSES IN THE VALUE CHAIN THAT REQUIRE PARTNERSHIP.

 CASHEW NURSERY OPERATORS

•Cocoa Research Institute of Nigeria

•College of Agriculture Kabba Kogi State Nigeria

•Kogi State University Ayingba Kogi State Nigeria

•Federal University of Agriculture Abeokuta Ogun State Nigeria

•Kwara State Ministry of Agriculture Ilorin

•Cross River State Ministry of Agriculture

•Akwa Ibom State Ministry of Agriculture

•Imo State Ministry of Agriculture

CASHEW PRODUCTION AND PROCESSING PLANTS IN NIGERIA

S/n	Name	Address	Contact	Phone
1	Abod Success Inv. Ltd	Ogundeyi Estate, Teniplant B/s, Ikorodu Sagamu Road, Ikorodu Lagos	Mr. Tunde Ogunuga	08023141892 01-4715090
2	On-Micro Ent. Ltd	4, Alh. Lawal Street, Ketu, Lagos	M. Onwuka	08023055526
	ACET Nig. Ltd	10, Uroji Street, Iyere Owo Ondo State	Mr. Jide Anjorin	08033571210
4	Jof Ideal Farms	Oke Ogun Street Owo Ondo State	Tunji Fagboyegun	034-244286
5	Kola Dafe Nig. Ltd	39/41, Durosimi Street, Shomolu, P.O.Box 404, Shomolu Lagos	Mr. Bayo Ewunuga	01-4973803 08033072410
6	Nefraday Farms Ltd	Ogbomosho-Ilorin Exp., Ilorin Kwara State	Chief S. Adewusi	031-221216, 031-221318
7	Riched Cashew Nigeria Limited	Kaduna	Mr. Sulaiman	08069582748, 08079796596
8	George Mofiet Nig. Ltd	Ibadan, Oyo State
9	Olam Nig. Ltd	Block CC “F” Adewinbi Layout Araromi Owode, Oyo State	K. Suresh	01-7754967
10	Eastern Farm Ltd	Uyo	Mr. Akpan
11	Agropro Ind. Ltd	Okigwe, Imo State	Mr. Zeev Galili	08037075598, 084-482442
12	Kedban Venture Ltd	21, Kugba Road, Mokola, Abeokuta, Ogun State	Mr. Bameka	039-2425888, 039-242515
13	Embik Inv. Ltd	Plot 280 Trans-Amadi Layout, P.O.Box 4436, Port-Harcourt, River State
14	Asafra Nig. Ltd	Owerri, Imo State
15	Matnad Investment Ltd	24, Milverton Avenue, 3rd Floor, Aba, Abia State	Mr. Ifeanyi Igwu	082-351675, 08033417431
16	Reliance Investment Ltd	Owerri, Imo State
17	Cashew nuts Processing Industry	4, Askar Paint Road, Eleyele, P.O.Box 18434, Ibadan, Oyo State	Mr. Adeniyi Babalola	01-4523450, 02-2414643
18	Ndu Best Cashew	Ojo Town, Lagos
19	Chucks Commercial Industry Ltd	Onitsha, Anambra
20	Sem Nut Industry	Onitsha, Anambra
21	Fugard Processing Industry	Jos, Plateau State
22	Emeka Cajan Industrial Company Ltd	2, Oko Awo Street, Opp. Afribank off Docemo Street, Lagos	Emeka Okpalake	01-2641166, 064-649389

INVESTMENT INCENTIVES 

The Nigerian Investment Promotion Council (NIPC) has been set up by the government to offer a number of incentives to investors which include:

•Five years tax holiday if granted pioneer status, i.e. located in rural areas.

•Import tax exemption facilities for agro-industrial equipment.

•0% input tax on cashew kernel export.

•Easy land facilitation-long term leasing for abandoned locations.

•Stable currency-generally.

•Raw material availability with good yield and quantity.

•30% of export proceeds of processed products repatriated to Nigeria are given as a grant.