President Bola Ahmed Tinubu has approved a 6-month temporary ban on the export of raw shea nut to curb informal trade, boost local processing, protect and grow Nigeria’s shea industry.
The ban, which is with immediate effect, is subject to review on expiration and specifically aimed at boosting Nigeria’s shea value chain to generate around $300 million annually in the short term.
Vice President Kashim Shettima who announced the president’s directive on Tuesday during a multi-stakeholder meeting at the Presidential Villa, called on the Federal Ministry of Finance and other relevant government agencies to fast-track enforcement.
Speaking further on the directive, the Vice President said the decision was not an anti-trade policy, but a pro-value addition policy designed to secure raw materials for our processing factories and enabling industries run at full capacity thereby boosting rural income and jobs for our people.
He added that the decision will transform Nigeria from an exporter of raw shea nut to a global supplier of refined shea butter, oil and other derivatives, emphasizing that it also promotes industrialization, rural transformation, gender empowerment and expanding Nigeria’s global trade footprint.
Economic opportunities and market potential
On opportunities for job creation and income generation, the VP Shettima noted that Nigeria produces nearly 40% of the global shea product, yet we account for only 1% of the market share of $6.5 billion.
“This is unacceptable. We are projected to earn about $300 million annually in the short term, and by 2027, there will be a 10-fold increase. This is our target,” he said.
VP Shettima explained that the ban was a collective decision involving the sub-nationals and the Federal Government with clear directions for economic transformation in the overall interest of the nation.
“Government is not closing doors; we are opening opportunities. Mr President is currently in Brazil, and both countries have agreed to prioritize access for Nigerian shea butter and oil into the Brazilian market.
“This process will be completed within the next 3 months,” the VP added.
The Vice President further highlighted the gender dimension of the policy, noting that by protecting the shea industry, we are protecting livelihoods, dignity and opportunity for millions of our women.
“We are not closing doors; we are opening better ones. Today, we plant the seeds of an industry that will yield fruit for decades to come for our women, for our economy, and for Nigeria’s place in global trade,” he stated.
Minister Kyari highlights Nigeria’s shea market challenges
the Minister of Agriculture and Food Security, Senator Abubakar Kyari, explained that despite Nigeria being the world’s largest producer of shea nuts, contributing nearly 40% of global supply, the country captures less than one percent of the multi-billion-dollar global shea economy.
He said Nigeria produces an estimated 350,000 metric tonnes of shea annually across 30 states, with the potential to reach nearly 900,000 metric tonnes, yet our share of the 6.5-billion-dollar global market is less than one percent
According to the Minister, the assessment showed that over 90,000 metric tonnes of raw shea are lost each year in informal cross-border trade, even as Nigeria’s processors operate at only 35 to 50% capacity despite a national installed capacity of 160,000 metric tonnes.
Regional context and market potential
Senator Kyari further explained that while regional neighbours such as Ghana, Burkina Faso, Mali, and Togo have already imposed restrictions to protect their industries, Nigeria is vulnerably left as the outlier and a hotspot for opportunistic and unregulated buying.
“The shea sector could generate more than 300 million dollars annually in the short term and position Nigeria to capture a significant share of the projected 9-billion-dollar global market by 2030.
“Shea is one of the few commodities where our country holds both a comparative and absolute advantage. With over five million hectares of wild-growing shea trees, Nigeria has the natural endowment to dominate not only in production but also in value-added processing.
“Shea is also identified in our Zero Oil Plan as a strategic non-oil export. With a projected global market growth from 6.5 billion dollars today to 9 billion dollars by 2030, Nigeria can position itself at the heart of this expansion,” Kyari noted.
He added that the benefits of the temporary ban are equally compelling as it will secure domestic supply, enable processors to operate at full capacity, curb informal trade, and lay the foundation for Nigeria to transition from exporting raw kernels to exporting high-value derivatives such as butter, olein, and stearin.
