President Bola Tinubu has approved a six-month temporary ban on the export of raw shea nuts. The ban takes effect immediately and aims to protect Nigeria’s shea industry, boost local processing, and curb informal trade.
According to the presidency, the policy could generate $300 million annually in the short term.
Shettima Explains Policy Goals
Vice President Kashim Shettima announced the directive during a meeting at the Presidential Villa in Abuja. He explained that the policy is not anti-trade but a pro-value addition measure.
Shettima said the ban will:
- Secure raw materials for Nigerian factories.
- Enable industries to run at full capacity.
- Create jobs and raise rural incomes.
- Transform Nigeria into a global supplier of refined shea products.
He added:
“Nigeria produces nearly 40% of global shea, yet we account for only 1% of the $6.5 billion market.”
Market Opportunities for Nigeria’s Shea Butter
The Vice President revealed that Nigeria is finalising a deal with Brazil to expand access for Nigerian shea butter and oil. The agreement is expected to be completed in three months.
He also stressed the gender benefits, noting that 90% of shea pickers and processors are women. Protecting the industry would safeguard their livelihoods and improve economic opportunities.
Agriculture Minister Highlights Losses
Minister of Agriculture and Food Security, Senator Abubakar Kyari, said Nigeria produces about 350,000 metric tonnes of shea annually but captures less than 1% of the global market.
Findings from a rapid assessment showed:
- Over 90,000 metric tonnes are lost each year to informal exports.
- Local processors run at only 35–50% capacity, despite a 160,000-tonne capacity.
- Neighbouring countries like Ghana, Mali, Burkina Faso, and Togo already restrict raw exports to protect their industries.
Economic and Social Impact of the Ban
Kyari said the directive would:
- Generate over $300 million annually in the short term.
- Position Nigeria to capture a share of the $9 billion global market by 2030.
- Empower rural women who dominate the shea sector.
He emphasised that shea is listed in Nigeria’s Zero Oil Plan as a priority non-oil export.
“Without this action, Nigeria risked becoming a raw depot for opportunistic buyers. The ban secures supply and boosts local processors,” Kyari noted.
A Path to Long-Term Growth
The temporary ban is designed to:
- Support domestic processors.
- Reduce informal cross-border trade.
- Build Nigeria’s reputation as a hub for value-added shea products such as butter, olein, and stearin.
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