By Samuel Enemona Endurance
The Kogi State Government has commenced plans to establish a cashew processing plant as part of efforts to increase value addition, attract investment and expand the contribution of agriculture to the state’s economy.
The Commissioner for Agriculture, Hon. Timothy Ojoma, disclosed this in Lokoja during a meeting with executives of the National Cashew Association of Nigeria (NCAN), Kogi State Chapter.
Ojoma said the government was engaging relevant agencies and private investors on the proposed facility, which is expected to begin with semi-processing before expanding into full-scale industrial operations.
Kogi Targets Cashew Value Addition
The proposed processing plant is intended to help Kogi State move beyond the production and sale of raw cashew nuts by creating opportunities to process the crop locally before it reaches domestic and international markets.
The commissioner said the initiative would strengthen the state’s position in Nigeria’s cashew industry while creating opportunities for farmers, processors, traders and other participants in the agricultural value chain.
Ojoma described cashew as one of Kogi State’s promising non-oil agricultural commodities and said the government was working to attract investors who could partner with farmers and cooperatives to improve production, processing and marketing.
The move is also in line with the broader need for Nigeria to diversify its economy and strengthen agriculture and agro-processing rather than relying heavily on crude oil revenue. Nigeria’s economic history shows the importance of building a more diversified productive base capable of generating sustainable revenue.
Government Woos Investors Into Agriculture
According to the commissioner, the administration of Governor Ahmed Usman Ododo has continued to prioritise agriculture as part of its economic development strategy, with emphasis on crop diversification, rural infrastructure and youth participation in agribusiness.
He said attracting private investment into agricultural processing would enable the state to create more economic opportunities while reducing the dependence on the export of unprocessed agricultural commodities.
Ojoma also urged the National Cashew Association of Nigeria to take advantage of programmes offered by the Federal Ministry of Agriculture and Food Security and the Nigeria Export Promotion Council.
He said stronger collaboration with federal agencies and other development institutions would help improve agricultural production, strengthen value chains and create opportunities for farmers to access wider markets.
Commissioner Warns Farmers Against Unauthorised Deals
The commissioner advised cashew farmers to avoid unauthorised dealings with foreign buyers and ensure that transactions are conducted through approved channels.
He said proper regulation of transactions would help protect farmers and ensure that the state benefits from the growing commercial potential of its cashew industry.
The proposed processing facility could also create a more structured relationship between farmers, cooperatives, processors and buyers, potentially improving the value received by producers.
Government Plans Financing Window for Cashew Farmers
On access to finance, Ojoma disclosed that the Ministry of Agriculture was exploring partnerships with the Central Bank of Nigeria and commercial banks to establish a dedicated financing window for cashew farmers.
He said the proposed arrangement would enable farmers to access loans at single-digit interest rates to purchase equipment, expand their farms and improve productivity.
Affordable agricultural financing could become particularly important if Kogi is to increase both the volume and quality of cashew production needed to sustain a local processing industry.
The development also highlights the wider importance of access to capital for Nigerians seeking to build businesses around agriculture and other productive sectors. A properly structured business plan, for example, can help entrepreneurs prepare for financing and investment opportunities.
Kogi Plans International Training for Cashew Stakeholders
The commissioner further disclosed that the state government was considering sponsoring one or two members of the association to participate in international training programmes and trade fairs.
He said the objective was to expose participants to modern techniques in cashew processing, packaging and marketing so they could return and transfer the knowledge to farmers and other stakeholders in Kogi State.
“The idea is for them to go out, learn modern processing and packaging, and come back to transfer that knowledge to our people. That is how we build capacity from within,” Ojoma said.
NCAN Says Kogi Has Major Cashew Potential
Responding, the Kogi State Chairman of NCAN, Alhaji Ichapi Muhammed Agala, who also serves as the association’s North-Central Youth Chairman, commended the state government for its support for agriculture.
Agala said Kogi farmers account for more than 60 per cent of the state’s annual cashew production, arguing that investment in processing and value addition could transform the sector into a major source of revenue for the state.
“Every year, we produce above 60 per cent, and if that is converted to cash properly, it means a lot for our economy. But we need the government to listen to our concerns in the area of factory establishment and other investments that will help the state partner with us,” he said.
Farmers Seek More Processing Facilities
Agala commended the agriculture commissioner for visiting cashew-producing clusters but called for more targeted interventions in wet and dry processing.
He said improved processing facilities would help farmers meet international quality standards and increase the competitiveness of Kogi’s cashew products.
According to him, a functional processing plant would strengthen Kogi’s position among Nigeria’s major cashew-producing states, including Oyo, Osun and Enugu, where value-addition facilities are already operating.
He also urged the state government to expedite plans for affordable financing through commercial banks, saying access to modern equipment and working capital would enable farmers to expand production.
Stakeholders Seek Stronger Government Collaboration
The NCAN chairman called for stronger collaboration among the association’s national body, the Kogi State Internal Revenue Service, the state Ministry of Agriculture and development partners.
He said such collaboration would ensure that the concerns of farmers are properly reflected in government policies and programmes affecting the cashew value chain.
Agala also appealed for more sponsorship opportunities for farmers and association members to participate in international training programmes and trade fairs where they could gain exposure to modern practices in production, processing and marketing.
Technical Committee to Develop Cashew Plant Proposal
At the end of the meeting, the commissioner and the NCAN chairman agreed to establish a technical working committee to develop a proposal for the proposed cashew processing plant.
The committee is also expected to harmonise the demands of cashew farmers with the agricultural development agenda of the Ododo administration.
If successfully implemented, the proposed facility could provide a new pathway for Kogi to increase the economic value of its cashew production through local processing, while creating opportunities for farmers, young people, processors, transporters and other businesses connected to the agricultural value chain.
The initiative comes as Nigeria continues to seek ways of expanding non-oil economic activities, creating jobs and strengthening local production. For Nigerians looking to build additional income streams, building multiple sources of income remains an important part of improving household financial resilience.
Kogi State has also remained a major focus of The Bureau Journal’s coverage, including developments around security and economic activity. Recent reports include the arrest of suspected terrorists in Ajaokuta, Kogi State.
The development will be closely watched by farmers and investors as the proposed technical committee begins work on the processing plant proposal.
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