By Amofokhai Williams
President Bola Tinubu has announced an immediate six-month ban on the export of raw shea nuts from Nigeria, a move aimed at strengthening the country’s shea value chain, curbing informal trade, and fostering local processing to enhance economic returns.
The directive, effective immediately, was disclosed by the Minister of Agriculture and Food Security, Senator Abubakar Kyari, during a briefing at the Presidential Villa in Abuja.
Vice-President Kashim Shettima led an implementation meeting with key stakeholders to ensure compliance and effective execution of the policy.
The decision follows the recent commissioning of Africa’s largest shea butter processing facility in Kudu, Mokwa Local Government Area, Niger State, by Salid Agriculture Nigeria Limited.
The facility, with an annual production capacity of 30,000 metric tons and plans to scale up to 400 metric tons per day, underscores Nigeria’s push toward value-added processing.
The ban is part of a broader strategy to transform Nigeria from a raw material exporter to a global supplier of refined shea products, such as butter and oil, which command higher market value.
The Nigerian government estimates that the enhanced shea value chain could generate approximately $300 million annually in the short term, with projections of a tenfold increase by 2027.
Nigeria produces nearly 40% of the global shea supply, approximately 350,000 metric tons annually across 30 states, yet captures only 1% of the $6.5 billion global market.
The ban aims to address this disparity by promoting local processing, which could create jobs, particularly for women, who make up over 90% of shea nut pickers and processors.
According to Kyari, the policy aligns with similar measures in West African countries like Ghana, Burkina Faso, Mali, and Togo, which have restricted raw shea nut exports to bolster their domestic industries.
A rapid assessment by the Presidential Food Systems Coordinating Unit (PFSCU) revealed that Nigeria loses over 90,000 metric tons of raw shea nuts annually to informal cross-border trade, with local processors operating at only 35–50% of their 160,000-metric-ton capacity.
This ban seeks to redirect these resources to domestic facilities, enhancing processor utilization and stabilizing the sector.
Vice-President Shettima emphasized the potential for job creation and women’s empowerment, noting, “This is about industrialization, rural transformation, gender empowerment, and expanding Nigeria’s global trade footprint.”
The policy is expected to support rural communities, where shea nut collection is a critical livelihood, particularly for women, and aligns with the Tinubu administration’s focus on economic development and gender equity.
The move mirrors actions taken by other West African nations. For instance, Ghana announced a phased ban on raw shea nut exports to be fully implemented by 2026, aiming to revitalize its processing industry, including the rehabilitation of the Buipe Shea Processing Factory.
Similarly, Niger State banned unprocessed shea nut exports in 2023 to boost local revenue and support women entrepreneurs.
However, concerns have been raised in Ghana about the potential negative impacts of such bans on rural women, who rely on raw nut sales for their livelihoods, highlighting the need for balanced policies that support both processors and collectors.
In Nigeria, the government acknowledges challenges such as unregulated harvesting and limited processing infrastructure.
The PFSCU’s assessment underscored the urgency of addressing informal trade, which undermines official export channels and deprives the country of significant revenue.
To mitigate these issues, the government plans to invest in processing infrastructure and establish robust export frameworks for value-added shea products during the six-month ban period.