The Oyo State House of Assembly has taken steps to protect local cashew farmers while tightening regulations guiding the operations of foreign investors in the stateโs cashew industry.
The move followed the presentation of a report at plenary by the Joint Committee on Agriculture and Rural Development, Commerce and Cooperatives, after investigating a petition submitted by the National Cashew Association of Nigeria (NCAN).
The Committee noted that although the Federal Government banned foreign participation in farm-gate cashew buying in March 2022, foreign investors still play a key role in the export segment by purchasing cashew nuts from licensed warehouses rather than directly from farmers.
Findings from the investigation revealed that the use of synthetic packaging materials violates international trade standards, while unregulated farm-gate activities by foreign buyers disrupt local buying agents and merchants, negatively affecting the value chain.
Based on these observations, the Committee recommended that foreign investors be restricted to designated export zones, farmers and traders be mandated to use approved jute bags for packaging, and licensed local buying agents, merchants, and exporters work collaboratively to strengthen the industry.
The House also commended Governor Seyi Makindeโs administration for maintaining a secure and investment-friendly environment, while urging relevant ministries and law enforcement agencies to strictly enforce existing regulations.
The report stressed that protecting local farmers while properly regulating foreign participation is critical to sustaining Oyo Stateโs cashew industry and boosting its overall economic impact.
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