The Kogi State cashew dealers have urged the state government to intervene and stop foreigners from disrupting the cashew value chain, citing exploitation and poverty as major concerns.
The dealers asked the government to take action to prevent foreigners from exploiting local farmers.
Some of them, who spoke exclusively, lamented that they have been facing this problem for over 30 years, with foreigners, especially Indians, bypassing local merchants and buying directly from farmers.
They argued that this disrupts the value chain, hurting local merchants and reducing farmers’ income, which contributes to poverty and insecurity.
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Baba Mohammed, the BOT chairman of the Kogi Cashew Dealers Stakeholders Association, explained that the foreigners’ actions are reducing local farmers to extreme poverty, as their goal is to export the product without adding value to the local economy.
Mohammed explained that the value chain in the cashew industry involves farmers, buyers, licensed buying agents, merchants, exporters, and processors.
He, however, said foreigners are disrupting this chain by buying directly from farmers, which hurts local merchants and reduces farmers’ income.
Mohammed lamented that the locals are being pushed out of the process, and their livelihoods are being threatened.
He revealed that the Kogi State Assembly has fast-tracked a motion to address the issue, directing the Ministry of Agriculture to intervene.
He stated that the farmers are seeking the government’s intervention to protect their livelihoods and ensure that the cashew industry benefits the local people.
Mohammed expressed hope that the government will take action to address the issue and prevent foreigners from exploiting local farmers.
The BOT chairman stressed that the association is not against foreigners investing in the cashew industry, but they want them to follow the proper value chain and not bypass local merchants.
He noted that foreigners should add value to the local economy and not just export raw materials.
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Mohammed emphasised that the government needs to enforce policies that protect local farmers and ensure that the industry benefits the local economy.
Also speaking, Idris Yakub, vice chairman of the association, echoed same sentiments, stating that foreigners are taking over the work of locals, driving down prices, and short-changing farmers.
Yakub noted that many farmers are misled by foreigners, who exploit their lack of exposure to market dynamics.
The association vice chair stressed that there is a federal government policy prohibiting foreigners from buying directly from the farm gate, lamenting that this policy is being violated.
He urged the state and federal governments to enforce this policy and prevent foreigners from undermining the value chain.
Yakub noted that the foreigners’ actions are not only hurting farmers but also contributing to insecurity in the state.
He said, “In summary, our appeal to the Kogi State government is simple: We don’t want foreigners, especially the Indians, Chinese, and Vietnamese, to take over the work of the locals. The local people, who should be involved in the process, are being pushed out.”
Makama Adamu, the chairman of the Kogi State chapter of the Association, also voiced strong concerns over the growing influence of foreign businesses in local markets, particularly in the cashew export industry.
He warns that if this trend continues, it could have a detrimental impact on local businesses and the value chain.
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“It will discourage the citizens of the country if foreigners exploit our hospitality to their advantage, undermining the value chain. We cannot allow them to take over and displace local businesses,” Adamu said.
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