The Federal Government has assured stakeholders in the shea industry that it will review the ban on raw shea nut exports, citing concerns about its effects on producers, exporters, and foreign exchange earnings.
Minister of Industry, Trade and Investment, Jumoke Oduwole, gave the assurance on Thursday in Abuja during a Stakeholders’ Validation Session on the Raw Shea Nut Export Ban in Nigeria.
The government had earlier announced a six-month temporary ban on the export of raw shea nuts on August 26, 2025.
The measure was introduced to promote local processing, encourage value addition, and reduce the export of unprocessed raw materials, with the broader goal of transforming Nigeria into a global hub for refined shea products.
What they are saying
Oduwole said the ministry would provide President Bola Tinubu with an objective briefing after consultations with stakeholders across the shea value chain.
According to her, the review will determine whether the export ban should be extended immediately or deferred.
She emphasised that the government recognises citizens’ right to earn a livelihood and contribute to national development, noting that all submissions would be thoroughly examined.
- “The ministry will provide the President with factual and balanced information to guide further action,” she said.
- “We will engage widely with stakeholders to ensure all perspectives are considered in the ongoing policy deliberations.”
The minister disclosed that the ministry received formal submissions from the umbrella association and convened engagement sessions with various industry representatives.
She explained that these submissions were reproduced and circulated at the meeting to enhance transparency and ensure a shared understanding among participants.
According to her, stakeholders’ positions were presented directly to enable participants to hear and assess the views submitted.
Backstory
In August 2025, President Tinubu approved a six-month temporary ban on raw shea nut exports to curb informal trade, boost local processing, and strengthen Nigeria’s shea industry.
The policy was subject to review upon expiration and was aimed at increasing value addition within the sector, with projections that the industry could generate about $300 million annually in the short term.
At the time, Vice President Kashim Shettima clarified that the decision was not anti-trade but designed to secure raw materials for domestic processors, ensure factories operate at full capacity, and expand rural employment and incomes.
He also noted that although Nigeria accounts for nearly 40% of global shea production, it captures only about 1% of the $6.5 billion global market.
With the six-month period now concluded, the Federal Government is expected to announce its decision on the policy.
More insights
Oduwole said relevant departments within the ministry have worked collaboratively on the matter, adding that she personally reviewed the submissions internally ahead of wider consultations.
- She noted that the range of participants at the session reflected the ministry’s commitment to inclusive policymaking, with stakeholders given the opportunity to freely express their views.
- The engagement brought together large and small-scale processors, exporters, aggregators, and rural women involved in the shea value chain.
- Minister of State for Industry, Sen. John Enoh, said policy decisions must prioritise the availability of raw materials for local processors.
- He stated that the ministry’s mandate aligns with the President’s broader development agenda, particularly in strengthening domestic industrial capacity.
Enoh also pointed to available data indicating improvements in processing capacity following earlier policy interventions, stressing that policy consistency is critical for sustaining investor confidence and industrial growth.
What you should know
Industry stakeholders have expressed mixed reactions to the temporary suspension of raw shea nut exports.
- An industry expert, who spoke anonymously, cautioned, “We need to establish local capacity to refine. We need to be careful otherwise; we will be penalising the exporters unnecessarily.”
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, had called on the Federal Government to clarify its policy direction on shea nut industrialisation.
