President Bola 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.
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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.”
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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,” just as he said it is about industrialisation, rural transformation, gender empowerment and expanding Nigeria’s global trade footprint.”
On opportunities for job creation and income generation, the vice president said, “Nigeria produces nearly 40 per cent of the global shea product, yet we account for only 1 per cent 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.”
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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 three 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.”
Earlier, the Minister of Agriculture and Food Security, Abubakar Kyari, who explained how the nation stands to benefit from the ban, regretted that despite being the world’s largest producer of shea nuts, contributing nearly 40 per cent of global supply, Nigeria 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.
“The Rapid Assessment of the Shea Value Chain, conducted by the PFSCU, the Federal Ministry of Industry, Trade and Investment and in close collaboration with the Federal Ministry of Agriculture and Food Security, provided the evidence that shaped this Presidential directive.”
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 percent capacity despite a national installed capacity of 160,000 metric tonnes.”
Mr 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.”
Underscoring the enormous potential of the shea trade for Nigeria, the minister noted that the shea sector “could generate more than $300 million 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,” Mr Kyari noted.
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The minister further noted that since 90 per cent of pickers and processors of shea are women, investment in this value chain would directly translate into women’s empowerment, rural job creation, and sustainable livelihoods.
This, he said, aligns with the Tinubu administration’s focus on women empowerment and the pledge by the Federal Ministry of Agriculture and Food Security “not only to support the rural population but also to create a pathway for national economic development.”
Mr Kyari continued: “The reasons for this presidential directive are clear. Without corrective action, Nigeria risked becoming a raw depot for opportunistic and illicit buyers, undermining our processors’ capacities, disempowering rural women, and forfeiting billions in potential export revenues.
“The PFSCU rapid assessment, which engaged over 2,000 pickers and 65 processors, confirmed the urgent need for action. Informal exports, estimated at 90,000 metric tonnes annually, are draining our domestic supply.
“With neighbours like Mali, Burkina Faso, and Togo already restricting raw exports, Nigeria risked being left as the region’s raw depot. The benefits of the temporary ban are equally compelling.
“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.”
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