Business
Boosting Industrial Utilisation Of Cashew In Nigeria
Anyigba is a major town in Kogi State and the serene community, which hosts the Kogi State University, is the site of a new cashew processing plant.
Analysts believe that the siting of the plant in Anyigba is apt because of the abundance of cashew in the neighbourhood to sustain full-scale production all-year round.
The cashew processing plant was established by Kogi State University in collaboration with the Raw Materials Research and Development Council (RMDC) because of the abundant cashew available in Kogi State and neighbouring states.
The university contributed the plant’s infrastructure — the building — while the RMRDC contributed the equipment. The RMRDC supplied the equipment through Abod Success Investment Ltd., a company which processes cashew nuts into spiced kernels.
Prof. Peter Onwualu, the Director-General of the RMRDC, says that 400, 000 metric tonnes of cashew are produced annually in Kogi State, for instance.
“About 60 per cent of the cashew is processed into intermediate products, such as cashew kernels, by an Indian company; Olam International, while the remaining 40 per cent is virtually wasted.
“The processed cashew products are shipped to India for further value addition and they are exported to the US and some parts of Africa as finished products,” he says.
The establishment of the cashew processing plant is, therefore, considered by analysts to be the climax of the efforts of the RMRDC to utilise the abundant cashew crop in the state and process it for value addition.
Observers say that Anyigba, a sleepy town, is now experiencing a flurry of business and entrepreneurial activities because of the cashew processing plant.
Onwualu says that Kogi State University had stockpiled enough raw materials that would sustain commercial production until the next harvest season, adding that the plant’s equipment had also been installed by the RMRDC.
He notes that that the equipment were locally designed and fabricated to promote local engineering capacities of the plant.
“This is the beginning of the actualisation of the policy of developing industrial clusters as a means of facilitating the growth of small scale industries in Nigeria,” Onwualu says.
The plant, which was inaugurated on October 14, 2010, is widely described as a venture which signifies the transformation of Kogi State University into a centre of purposeful learning and entrepreneurship.
The Deputy Governor of Kogi State, Dr Philip Salawu, shares similar sentiments. He believes that the launch of the cashew processing plant connotes the development of the university into “a citadel of manpower development and enterprise’’.
He says that the plant will stimulate economic activities in the state and the community in particular.
Salawu stresses that the inauguration of the plant is a fulfillment of the vision of the administration Gov. Ibrahim Idris to transform the state university into a centre of excellence.
Commenting on cashew production, the Minister of Science and Technology, Prof. Muhammad Ka’oje, says that the Federal Government is aware of the economic value of cashew, adding that efforts are being made to improve its production.
He says that cashew production in Nigeria increased from about 30,000 tonnes in 1990 to more than 176, 000 tonnes in 2000, adding that the development has made Nigeria to become an important participant in the world cashew market.
The minister, who gave the approval for the Anyigba cashew processing plant in 2009, underscores the importance of the project in efforts to actualise the industrial targets of the Federal Government’s Vision 20:2020 programme.
In most cases, the juicy cashew fruit is eaten raw, while its nuts are processed to be eaten or used as raw materials for industrial or medicinal products.
Diet Foods and Nutrition, a web-based health publication, says that cashew nuts, like all edible nuts, are an excellent source of protein and fibre.
It says that cashew nuts are rich in mono-unsaturated fat, which may help in protecting the heart, while they are also a good source of potassium, B vitamins, magnesium, phosphorous, selenium and copper.
Research has also shown that Cashew Nutshell Liquid (CNSL) — a by-product of processed cashew nuts — contains anacardic acids, which could be further processed into alcohol or used for treating tooth abscesses.
In spite of the multifaceted benefits of cashew, cashew processing is largely nonexistent in Nigeria and experts say that 90 per cent of cashew nuts produced in the country are exported to overseas countries.
Ka’oje bemoans the situation where the countries importing Nigeria’s cashew have established cashew processing factories to process the nuts, in particular, into various value-added products.
He insists that the country is losing a lot of revenue by merely exporting cashew as a raw farm produce.
The minister says that the Anyigba cashew processing plant, therefore, demonstrates the government’s determination to reverse the trend and ensure the optimal exploitation of farm produce to enhance their value addition.
Prof. Hassan Isah, the Vice-Chancellor of Kogi State University, says that the cashew processing plant currently has a workforce of over 200, including a management team.
He says that the plant, which commenced production in July 2010, is a product of a synthesis of ideas and a strong desire to harness the potential of the abundant cashew available in the country for development efforts.
Isah notes that every part of the cashew fruit is useful, saying: “The fruits are edible and they are a reliable source of protein, fatty acids and minerals. They are also used in confectionery and bakery industry.
“The cashew CNSL is an important multipurpose industrial raw material in the production of resins and friction powder for the automobile industry,” he says.
Isah says that cashew has an excellent international market value, with the US importing about 10 million dollars (about N1.5 billion) worth of CNSL annually.
Nwoko is of the News Agency of Nigeria (NAN)
Ifeanyi Nwoko
Business
SMEs Dev: Firms Launch N100m Loan Scheme
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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