Industry stakeholders are expressing mixed reactions to President Bola Tinubu’s recent decision to suspend the export of raw shea nuts for six months.
The government says is aimed at stimulating local processing and boosting value addition in Nigeria’s agro-economy.
Shea, widely referred to as “women’s gold,” is a key source of livelihood for thousands of rural women, especially in northern Nigeria, where collection and initial processing are often carried out.
Concerns over policy implementation, domestic refining capacity
Former National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Chairman of the Alliance for Economic Research and Ethics Ltd/Gte, Hon. Dele Kelvin Oye, has urged the Federal Government to provide clarity on its recent policy on shea nut industrialisation.
In a message to Nairametrics, Oye commended the administration’s commitment to value addition but cautioned against hasty policy reversals without adequate transition and broad consultation.
“While we recognise and commend the administration’s commitment to value addition, we caution that immediate policy reversals without adequate transition and sector-wide consultation risk undermining ongoing commitments, investment plans, and the livelihoods of many members of our Alliance trade networks,” he said.
He further stressed the importance of proper implementation, warning that even well-intentioned policies could fail if poorly executed.
“We need to draw attention to the potential risks of poor implementation of a good policy. We hereby seek clarification and direction from Mr President to ensure that his good policies are not poorly executed,” he added.
One shea nut exporter who also spoke to Nairametrics on condition of anonymity said
“Some shea nut exporters have about $4million subsisting contracts before this policy was announced. We are talking about loans and other facilities that need to be serviced. Many may run into serious debts as no consultation was made before the announcement.”
An industry expert who spoke to Nairametrics on the condition of anonymity on the issue said, “We need to establish local capacity to refine. We need to be careful otherwise; we will be penalising the exporters unnecessarily.
There are many other products. This can lead to people smuggling out the product across the porous borders. How do you enforce this?”
Agricultural extension expert at the University of Abuja, Grace Ajayi, speaking to Nairametrics said while the policy has potential, the reality on the ground presents serious challenges.
- “Processing industries are still underdeveloped, and many operators struggle with high energy costs, limited access to credit, and poor infrastructure. If the suspension is enforced without addressing these issues, farmers and collectors may suffer losses because processors won’t be able to buy all the supply,” she warned.
Regional shea nut export bans put pressure on Nigeria
A policy document obtained by Nairametrics further explains the rationale behind the presidential decision.
According to the document, the ban becomes necessary because Nigeria has become increasingly vulnerable due to regional trade dynamics.
While Burkina Faso, Mali, Ghana, and Togo have already banned the export of raw shea nuts to strengthen their domestic processing industries, Nigeria remains the only country in the sub-region still allowing such exports.
- “These bans have increased demand for Nigeria’s raw shea nuts, driving up informal exports and further reducing the availability of raw materials for Nigerian processors—undermining domestic value addition
- “Nigeria is now the only country in the region still permitting raw shea exports, making it a hotspot for opportunistic buying. International buyers—including traders from neighboring countries—are flooding Nigeria to exploit this policy gap.
- This inflow has deepened scarcity and undermines local processors, who now compete with exporters for raw supply.”
The document stated further “There is an opportunity to boost the shea value chain to generate around $300million annually in the short term if the recommended ban is enforced appropriately and efficiently.”
Action will further boost non-oil exports
Some experts have noted that the policy could significantly strengthen Nigeria’s non-oil export sector in the long run.
A trade analyst, Dr. Ibrahim Musa said the suspension is designed to reposition Nigeria in the global shea value chain, where the country has long been disadvantaged.
- “Nigeria is the largest producer of shea in the world, but the benefits to our economy have been minimal because we mostly export raw nuts. By processing locally into shea butter, cosmetics, and other high-value products, we can increase foreign exchange earnings, reduce dependency on crude oil, and create sustainable jobs,” he explained.
- He further noted that countries such as Ghana and Burkina Faso have shown how value addition in the shea industry can translate into billions of dollars in revenue and significant employment opportunities.
Key milestones in policy implementation
The document seen by Nairametrics shows that the implementation of the raw shea nut export ban will follow a phased approach beginning in the third quarter of 2025.
- To support this, aggregation infrastructure will be established and operationalized between the third and fourth quarters of 2025 in major producing states such as Niger, Kwara, and Kebbi.
- Customs officers will also undergo training, with resources deployed to key border zones and surveillance protocols introduced to strengthen enforcement against smuggling.
- In the fourth quarter of 2025, an initial performance review will be conducted to assess the policy’s impact on processor utilization, trade formalization, and supply availability.
This will be followed by a mid-term policy evaluation in the second quarter of 2026, focusing on export structures, rural income gains, and overall sector outcomes, which will help guide subsequent policy adjustments, the document revealed.
Backstory
President Tinubu, on Tuesday approved a 6-month 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.
President Tinubu said, “Nigeria’s shea is our green wealth. We produce nearly 40% of the world’s supply, yet capture less than 1% of its $6.5bn global market. That imbalance ends now. I have approved a six-month suspension of raw shea exports, on the recommendation of the Presidential Food Systems Coordinating Unit, to secure supply for local processors, create jobs, and protect a value chain where 95% of pickers are women.
“With new market access opening in Brazil and beyond, we will no longer export poverty and import value. We will create value at home, compete abroad, and deliver prosperity under the Renewed Hope Agenda,” Tinubu said.
What you should know
The ban also targets a tenfold increase in export revenue by 2027, with 99% of the value projected to come from refined shea products.
Nigeria’s non-oil exports rose to $3.225 billion in the first half of 2025, marking a 19.59% increase compared to $2.696 billion recorded in the same period of 2024, according to the Nigerian Export Promotion Council (NEPC).
The announcement was made by NEPC Director-General, Nonye Ayeni, during the presentation of the H1 2025 Non-Oil Export Performance Report in Abuja.
