In a major move to transform Nigeria’s shea industry, the federal government has announced a six-month ban on the export of raw shea nuts.
The decision, approved by President Bola Ahmed Tinubu, was disclosed by Vice President Kashim Shettima during a recent multi-stakeholder meeting in Abuja.
The ban is a temporary measure, subject to review at the end of the period, and is designed to reposition Nigeria’s position in the global market.
The primary goal of the temporary suspension is to encourage local value addition. By halting the export of raw nuts, the government aims to force a shift towards domestic processing, which generates significantly more economic value than the export of unprocessed commodities.
This strategic move is expected to support Nigerian processors, curb informal trade, and ensure that the country, as the world’s largest producer of shea nuts, benefits more substantially from its resources.
Nigeria produces an estimated 500,000 metric tons of shea nuts annually, which are highly sought after by the global cosmetics and food industries.
Despite this, the country has historically seen minimal economic returns from its shea exports, as most of the value is added abroad.
The global market for shea butter is projected to reach as high as $5 billion by 2025, highlighting the immense potential for Nigeria to increase its earnings by processing the nuts locally.
The shea tree, a long-term economic asset, begins to yield fruit after 11 to 15 years and can remain productive for over 200 years.
Major shea-producing states in Nigeria include Niger, Kwara, Kebbi, Nasarawa, and Kogi.
The government hopes that this ban will stimulate investment and growth in these regions, empowering local producers and creating jobs across the value chain.
