Successful Conclusion to NCAN Access to Finance Conference in Nigeria
The National Cashew Association of Nigeria (NCAN) organized a hugely successful Access to Finance Conference on Tuesday 23rd April 2013 in Lagos, Nigeria. Present at the well attended event were major stakeholders along the value chain in the Nigerian cashew sector, as well as major financial institutions including NEXIM Bank, Ecobank and Fidelity Bank.
Chief among the issues discussed was access to finance. In a speech read on his behalf by the General Manager Rev. Ifeanyi C. Nwade, the Managing Director of NEXIM Bank, Roberts Orya , expressed satisfaction in the huge strides that NCAN has made in harnessing the potential of the Nigerian cashew sector, despite the many challenges facing the industry.
He made particular mention of the Nigerian Cashew Cluster Finance Scheme, a project undertaken by NCAN in collaboration with the African Cashew Alliance (ACA) and USAID’s West Africa Trade Hub that was financed by the bank in 2012. NEXIM disbursed about N150 million (US$950,000) under the pilot scheme and has cumulatively disbursed about N1billion (US$6,327,000) to date to the sub-sector.
Orya noted that the Nigerian cashew industry has continued to operate below its potential, explaining that the industry is challenged with a myriad of problems ranging from old orlow yielding plantations to inadequate processing facilities and low levels of access to finance.
“The inability of Nigerian local producers to process their products has meant that about 95 per cent of the annual production is exported as raw commodities with attendant low prices and the inability of producers and exporters to receive commensurate reward for their efforts”, he said.
Representatives of Ecobank encouraged stakeholders to make their businesses attractive and bankable before approaching a bank for assistance. They advised them to present quality applications, supported by good business plans and off-take arrangements to facilitate increased funding intervention to the sector. Both Nexim and Ecobank reiterated their commitment to intervene in the cashew sector to enable better access to finance so that stakeholders will be able to grow the sector.
The national president of NCAN, Tola Faseru also remarked, “The NCAN is regulating the industry for the benefit of cashew farmers, traders, exporters, processors and all service providers to create more jobs”. The cashew sector is believed to be worth about 24bn Naira (US$151,848,000) to Nigeria’s economy whiles creating some 600,000 jobs.
