President Bola Tinubu has approved a fresh one-year extension of the ban on the export of raw shea nuts.
The renewed directive, which takes effect from February 26, 2026, to February 25, 2027, was disclosed in an official statement issued on Wednesday in Abuja by the President’s spokesman, Mr Bayo Onanuga.
The extension, the statement said, shows the Federal Government’s determination to strengthen domestic value addition and reposition Nigeria’s shea industry for higher export earnings through processed products.
The decision is also aimed at stimulating local manufacturing, creating jobs, and improving incomes across shea-producing communities.
What the Presidency is saying
The Presidency said the extension reflects its commitment to transforming Nigeria’s agricultural commodities into higher-value export products. It noted that the policy is designed to promote inclusive economic growth and strengthen local manufacturing capacity.
- “The decision underscores the administration’s commitment to advancing industrial development, strengthening domestic value addition, and supporting the objectives of the Renewed Hope Agenda,” the statement said.
- “The ban aims to deepen processing capacity within Nigeria, enhance livelihoods in shea-producing communities, and promote the growth of Nigerian exports anchored on value-added products.”
The statement added that the directive forms part of broader efforts to shift Nigeria away from the export of raw commodities toward a more industrial and export-driven economy.
Backstory
In August 2025, President Tinubu initially approved a six-month temporary ban on the export of raw shea nuts. The move was introduced to curb informal trade, stimulate local processing, and safeguard the long-term sustainability of Nigeria’s shea industry.
- The initial ban sought to address concerns about the large-scale export of unprocessed shea nuts with minimal domestic value addition.
- It was also aimed at protecting investments made by local processors within the shea value chain.
- The policy triggered mixed reactions within the non-oil export sector, with some stakeholders raising concerns about foreign exchange earnings and supply chain disruptions.
Last week, reports indicated that the Federal Government had assured stakeholders that the policy would be reviewed following consultations over its economic implications, setting the stage for the latest extension.
More Insights
To ensure effective implementation of the extended ban, President Tinubu authorised the Federal Ministry of Industry, Trade and Investment, in collaboration with the Presidential Food Security Coordination Unit, to coordinate a unified national framework for the development of the shea value chain.
- The President approved the adoption of an export regulatory framework developed by the Nigerian Commodity Exchange to standardise and streamline shea exports.
- All existing waivers that previously allowed the direct export of raw shea nuts have been withdrawn with immediate effect.
- Any surplus production must be channelled strictly through the approved exchange framework to ensure transparency, traceability, and fair market pricing.
The Federal Ministry of Finance has been directed to facilitate access to a dedicated NESS Support Window to support operators in the sector.
The intervention will enable the Ministry of Industry, Trade and Investment to pilot a Livelihood Finance Mechanism aimed at improving production capacity, processing efficiency, and global competitiveness within the shea industry.
What you should know
Shea nuts are harvested from the shea tree, predominantly found across Nigeria’s savanna belt and are oil-rich fruits used as raw materials in several manufacturing industries.
- When processed into shea butter, they are widely used in cosmetics, pharmaceuticals, confectionery, and edible oils, attracting significantly higher prices in international markets compared to unprocessed nuts.
- Processed shea butter commands stronger global demand than raw shea nuts.
- Local processing is expected to create more jobs across producing communities.
Since the policy took effect, it has sparked sharp divisions among players in Nigeria’s non-oil export sector, with shea butter producers and exporters expressing conflicting views on its impact more than a month after implementation.
