Nigeria and Vietnam have formally launched bilateral discussions aimed at strengthening trade and investment in the cashew industry. This landmark collaboration seeks to significantly enhance Nigeria’s cashew value chain, promote local processing, and create sustainable economic opportunities for stakeholders across both countries.
Dr. Ojo Ajanaku, the National President of the National Cashew Association of Nigeria (NCAN), made this revelation on Wednesday in Abuja following a high-level closed-door meeting. The session involved Ms. Nguyen Phuong, Head of the Vietnamese Delegation, alongside key representatives from the Vietnamese Embassy in Nigeria. The meeting marked a pivotal step in a broader effort to establish long-term trade and processing frameworks between Africa’s largest economy and one of Asia’s leading cashew processors.
Momentum Toward Formal Agreements
During the press briefing that followed the meeting, Dr. Ajanaku expressed optimism about the direction of the discussions. He disclosed that both countries are actively working on several contracts and Memoranda of Understanding (MoUs), which, once signed, will usher in a new era for Nigeria’s cashew industry.
“We have been working towards signing some contracts, and we are hopeful they will be successful,” Ajanaku confirmed. “With this Joint Trade Committee (JTC) and the additional MoUs under consideration, we believe this collaboration will revolutionize the cashew sector and uplift the lives of our farmers and processors.”
He stressed that the agreements under review are not just symbolic; rather, they are backed by real intentions to drive investment, transfer technical knowledge, and develop infrastructure within Nigeria.
Enhancing Bilateral Ties Through Agribusiness
Notably, this initiative extends beyond mere trade; it aims to fortify Nigeria’s bilateral relationship with Vietnam through meaningful economic engagement. As Ajanaku explained, partnerships like this reflect the mutual commitment to shared growth and regional stability.
“This initiative further strengthens Nigeria’s bilateral relationship with Vietnam. Foreign investment brings not just capital but a stronger sense of commitment to shared objectives,” he noted.
He emphasized that knowledge sharing and technical cooperation would be key pillars of the agreement, especially in a sector that remains largely underdeveloped in Nigeria despite its potential.
“There is no such thing as technology transfer unless it is bought or stolen,” he said. “But this time, they are coming to us willingly, which means we will benefit from direct technology transfer. This is unprecedented and deeply appreciated.”
Turning the Tide on Raw Exports
One of the most transformative aspects of the deal is its emphasis on local processing. Historically, Nigeria has exported large quantities of raw cashew nuts to Asia—especially Vietnam and India—for processing, only to import the finished products at higher prices. This model has long disadvantaged local farmers and processors.
However, this new partnership seeks to change that. Dr. Ajanaku announced that Vietnam’s involvement would now enable the bulk of cashew processing to take place within Nigeria.
“Previously, we had to export raw cashew to other countries for processing. Now, with this partnership, most of that processing will be done right here at home,” he said.
He added, “I can say our farmers’ prayers have been answered. They will now be in high demand and valued for the quality of their produce. No longer will they be forced to give away their cashew at low prices—it will now command the worth they truly deserve.”
Nigeria’s Climate Advantage in Cashew Cultivation
Dr. Ajanaku also emphasized Nigeria’s natural advantage in cashew production. The country benefits from a unique climate that supports high-quality yields, a resource not shared by all nations.
“Nigeria is fortunate to have the right climate and weather to grow cashews. That’s not something every country can claim,” he explained. “I say congratulations to our farmers. They should continue to support this initiative and pray for its full realization.”
He pointed out that because of these climatic advantages, Nigeria has already positioned itself as a major global supplier of raw cashew nuts. This move into processing, therefore, is a logical next step in the industry’s evolution.
Vietnam’s Dominance in Cashew Processing
On the other hand, Vietnam remains a global powerhouse in cashew processing and export. According to the International Nut and Dried Fruit Council (INC), Vietnam accounts for approximately 50% of the world’s processed cashew exports. The country’s advanced processing technology, competitive labor costs, and well-established supply chains have helped it dominate the global market.
Vietnam’s decision to invest in Nigeria’s local processing capacity is therefore a strategic move, one that could reduce its own dependence on raw nut imports while enabling Nigeria to capture more value from its agricultural exports.
“This collaboration allows Vietnam to secure a reliable source of raw cashew, while Nigeria gains access to technical expertise and improved infrastructure,” said Ajanaku.
A Look at Nigeria’s Cashew Market Potential
Nigeria currently ranks among the top cashew-producing countries in Africa, alongside Côte d’Ivoire and Ghana. Over the past decade, the country’s annual production has grown by an average of 5%, with projections indicating continued growth.
According to NCAN statistics, Nigeria is expected to produce up to 300,000 metric tonnes of cashew annually by 2030. This forecast underscores the critical importance of building processing facilities and streamlining the value chain.
Furthermore, the Nigerian government has increasingly prioritized agribusiness as a cornerstone of economic diversification, particularly in the face of oil revenue volatility. Cashew, as a high-value crop with strong export potential, fits perfectly into this strategy.
Implications for the Local Economy
If executed properly, this trade agreement with Vietnam could significantly enhance job creation, boost foreign exchange earnings, and reduce poverty among rural communities. Local processing would lead to the establishment of new factories, logistical services, packaging facilities, and training centers—all of which would create direct and indirect employment.
Moreover, by exporting processed cashew instead of raw nuts, Nigeria would substantially increase its share of the global market value. Currently, countries that process cashews capture up to 70% of the total value, while producers of raw nuts receive only a fraction.
“This partnership is not just about trade; it is about empowerment,” Ajanaku said. “It is about helping our people rise from the margins of the global value chain and finally take their rightful place.”
What Lies Ahead
Moving forward, both countries are expected to finalize the contract terms and initiate joint ventures within the next few months. The implementation phase will likely involve site visits, feasibility studies, and the establishment of cashew processing hubs in strategic locations across Nigeria.
Additionally, both governments are expected to create enabling policies to support the initiative, such as tax incentives, simplified importation of processing machinery, and capacity-building programs.
“This is just the beginning,” Ajanaku concluded. “With Vietnam’s support and our farmers’ resilience, Nigeria is ready to become a global leader not just in cashew production, but also in processing and exports.”
As Nigeria and Vietnam forge ahead, the world watches with interest—because this partnership could serve as a model for other commodity-producing nations seeking to escape the trap of raw exports and embrace industrialization.
