1 / 19

An overview of the Nigerian Cashew Sector & Investment Opportunities

An overview of the Nigerian Cashew Sector & Investment Opportunities. Olusegun Awolowo Executive Director/CEO Nigerian Export Promotion Council. Outline. Introduction About NEPC Nigerian Cashew profile Opportunities for investment Investing in Nigeria Business Registration Taxation

asara
Download Presentation

An overview of the Nigerian Cashew Sector & Investment Opportunities

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. An overview of the Nigerian Cashew Sector & Investment Opportunities OlusegunAwolowo Executive Director/CEO Nigerian Export Promotion Council

  2. Outline • Introduction • About NEPC • Nigerian Cashew profile • Opportunities for investment • Investing in Nigeria • Business Registration • Taxation • Financing • Incentives • Conclusion

  3. Introduction - About NEPC • Established in 1976 to promote the growth of non-oil exports and to diversify the Nation’s economy • Has its headquarter in Abuja with 15 Zonal offices spread across Nigeria • Main activities –Product development; Trade information & facilitation ; Market development; Multi lateral and Bi-lateral trade relations; Incentives; Capacity development. Export Business...Tomorrow's Business

  4. Introduction – Nigerian Cashew Profile • Ranked 7th, Nigeria is among top 10 Raw Cashew nut (RCN) producing countries in the world. • 4th in Africa after Cote d’Ivoire, Guinea-Bissau and Tanzania, 130,000 m/t produced in 2014 • Cashew is produced in commercial quantities in 15 of the 36 States in Nigeria, across its South Eastern, South Western and North Central regions. Grows in almost every state. • Cashew is Nigeria’s third largest agricultural export • Value of Cashew export in 2013 was $110M, which represented 8% of all agricultural exports.

  5. Nigerian cashew grows in different climatic zones. Ogbomosho, Kogi, Abeokuta are premium quality origins Kwara 10-15% Kogi 20-30% Oyo 12-15% Delta 2-3% Kano 3-5% Ebonyi 2-3% Enugu 8-10% Sokoto 3-5% Osun 7-9% Kaduna 6-8% Imo 8-10%

  6. Vital Statistics • Cultivated area - 325,000 hectares • Average yield per hectare: 0.4MT/ha • Commercial farms 0.8-1.2 MT/ha • Small holders 0.3-0.5 MT/ha • Local processing capacity : 25-30,000MT • 2015 production estimate: 140,000 m/t • Export of RCN 122,600MT (2014) • Export Earnings US$85m (2014) • Export of kernel 960 MT (2014)

  7. Vital Statistics • Raw Nut Markets: Vietnam 90%, India 10% • Kernel Markets: Singapore, USA, EU, etc. Employment in Cashew Industry • 500-700,000 • Factory Workers (2,000 formal, 1,000 informal) • (90% women, 40-60% youth)

  8. Processing Opportunities in Nigeria • Main processors • Olam, Valency, FoodPro, Abod Success, Kashford, Jof Ideal • Investment incentives • Tax breaks from Nigerian Investment Promotion Centre • Export development fund from NEPC • Export Expansion Grant under review • 5-year NEPC cashew strategy and collaboration with USAID-NEXTT adopted in October 2014

  9. Cashew Export and Investment Strategy Illustration processing-export incentives Goal: increase the cashew industry’s contribution to Nigeria’s non-oil exports market development market information farm-level support for companies quality & technical capacity building

  10. Investment Opportunities

  11. Why Invest in Nigeria? • Nigeria is undergoing an Industrial Revolution era • Cashew is one of Nigeria’s 13 National Strategic Export Products • Nigeria has an extensive cashew production belt (70% of the country’s agricultural land supports the production of cashew) • High population (170million people) representing huge domestic market, labour force • Liberal and conducive government policies for export • Export oriented Incentives

  12. Investing in Nigeria – Business registration Procedure

  13. Investing in Nigeria – FacilitationOne-Stop Investment Centre (OSIC)

  14. 16 Participating agencies

  15. Investing in Nigeria – Taxation Farmgate price (State government produce tax) FOB (0.5% FOB) =mandatory Inspection fees ECCC Export levy -$3.00 per tonne Export Duty – Zero Import Duty on Agricultural Inputs/equipment = Zero duty

  16. Investing in Nigeria – Financing

  17. Fiscal Incentive • Export Expansion Grant • Pioneer Status - 5 years tax holiday is granted to processing plants

  18. Conclusion • Nigeria’s population of 170million makes it the largest market in Africa • Nigeria has the largest economy in Africa with GDP of $500bn, making it a solid base and robust market for processed cashew • There is also a dynamic and energetic workforce is available for the industry • National Strategic Export Product status means added incentives and support.

  19. Export Business... Tomorrow's Business Thank you www.nepc.gov.ng info@nepc.gov.ng; ceo@nepc.gov.ng Export Business...Tomorrow's Business

More Related