By Faridat Salifu
The Kogi State House of Assembly has taken a decisive stand against the growing interference of foreign businesses in the state’s cashew nut trade, passing a resolution urging the state government to implement a regulatory framework to safeguard the value chain.
The motion, which was presented by Oluwaseyi Bello (APC-Kabba-Bunu), calls for the establishment of stricter regulations aimed at ensuring compliance and protecting local farmers from exploitative practices.
Bello’s motion comes in response to reports of foreign exporters bypassing Licensed Buying Agents and directly purchasing cashew nuts from farmers.
This trend, he argued, not only deprives the state of crucial revenues but also undermines the integrity of the value chain, which consists of exporters, merchants, licensed agents, sub-buyers, farmers, and other stakeholders.
Kogi State, which is the leading producer of cashew nuts in Nigeria, according to the National Bureau of Statistics, has seen significant interest from foreign buyers.
However, the Assembly expressed concern over the negative impact of these foreign players, who are seen as disrupting the established value chain and potentially jeopardizing the security of local communities.
“The essence of the value chain is to ensure every segment is recognized and protected. Allowing foreign exporters to bypass the system will only fuel insecurity, making it harder for the state to control,” said Ochidi Usman Shehu (APC-Dekina-Biraidu), who seconded the motion.
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In line with this, the motion calls for a complete ban on foreigners directly purchasing cashew nuts from farmers. Instead, it suggests that foreigners should only be allowed to buy “Export Ready Dried Cashew Nuts” that are packaged in Kogi-branded jute bags.
However, not all members of the House supported the motion.
Bode Ogunmola (PDP-Ogori-Magongo) argued that farmers should have the freedom to sell their produce to whoever they choose, and that they should not be forced into selling exclusively through the value chain.
Opposing views were also raised by Comfort Nwuchiola Egwaba (APC-Ibaji), the Deputy Speaker, who emphasized the importance of educating farmers on the dangers of selling their entire produce to foreign buyers, stressing that such transactions could undermine the long-term sustainability of local farming.
In response to the differing views, Speaker Aliyu Umar Yusuf assured that the House would continue to advocate for the protection of farmers’ rights and the state’s economy.
He directed the House’s Committee on Agriculture to work closely with the Ministry of Agriculture to develop the regulatory measures and ensure their swift implementation.
The Assembly’s resolution comes amid ongoing efforts to enhance the cashew industry’s sustainability, with the recent passage of the Kogi State Commodity Exchange Market Bill aimed at supporting local farmers and boosting productivity.
The proposed regulatory framework, if adopted, could serve as a model for other regions facing similar challenges in managing foreign interference in agricultural value chains.
