Sotonye Anga, the National Publicity Secretary of NCAN, told the News Agency of Nigeria in Lagos that cashew processors require government’s support to survive in the country.
Anga said the main reason for the imminent closure was because the factory was operating below 30 per cent installed capacity in 2015, in addition to the high cost of production.
He said the factory had an initial capacity of 28,000 metric tons per annum and had over 2,500 workers who were mostly women.
Anga said: “It is sad to say, but I am compelled to let you know that within days from today, January 28, Nigeria’s largest cashew processing factory will be shut down.
“In 2015, the cashew factory operated below 30 per cent of its installed capacity and by January 2016, it has become totally unsustainable and no longer viable processing cashew from this factory.
“The rationale behind the closure is the high cost of processing and production of cashew nuts, making them uncompetitive globally.”
According to Anga, the cost of processing cashew in other parts of the world is relatively low.
He cited countries such as India, Brazil, Ghana and Vietnam.
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Anga said the average cost of processing cashew in Nigeria is $500 per ton, as against $200 to $250 in other cashew processing countries earlier mentioned.
He said: “How can Nigeria compete globally when the cost of production is about the highest owing to poor electricity supply, high cost of diesel, huge cost of running the generators?
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