President Bola Tinubu has approved a six-month temporary ban on the export of raw sheanuts to strengthen Nigeria’s shea industry, boost local processing, and create new jobs.
The directive, announced by Vice-President Kashim Shettima after a multi-stakeholder meeting at the Presidential Villa, Abuja, takes effect immediately and will be reviewed after expiration.
Why the Ban Matters
Nigeria is the world’s largest producer of sheanuts, contributing nearly 40% of the global supply. However, the country captures less than 1% of the $6.5 billion global shea market, largely due to informal trade and limited local processing.
According to the Federal Government, over 90,000 metric tonnes of raw shea are lost annually to informal cross-border trade, while local processors operate at just 35–50% of installed capacity.
By restricting raw exports, the government aims to:
- Secure raw materials for local processors.
- Increase domestic value addition and exports of shea butter, oil, and derivatives.
- Boost rural incomes and job creation, especially for women, who make up 90% of pickers and processors.
Economic and Social Impact
Shettima emphasized that the decision was not anti-trade but pro-value addition, designed to transform Nigeria into a global supplier of refined shea products.
“Nigeria produces nearly 40% of global shea but holds just 1% market share. This is unacceptable. We aim to generate $300 million annually in the short term and achieve a tenfold increase by 2027,” the vice-president said.
The government also revealed that Nigeria is working with Brazil to secure market access for Nigerian shea butter and oil within the next three months.
Minister’s Perspective
Minister of Agriculture and Food Security, Abubakar Kyari, noted that with over five million hectares of wild-growing shea trees, Nigeria holds both comparative and absolute advantage in the global shea trade.
He added that the ban aligns with the Zero Oil Plan, which identifies shea as a strategic non-oil export that could position Nigeria to capture a larger share of the $9 billion global market by 2030.
Women Empowerment and Rural Jobs
Since the majority of shea pickers and processors are women, the government says the ban will directly drive women’s empowerment, rural transformation, and sustainable livelihoods.
“This decision plants the seed of an industry that will yield fruit for decades to come,” Shettima said.
