Nigeria has imposed a six-month temporary ban on the export of raw shea nuts, effective immediately, in a bid to boost local processing and protect the country’s shea industry. The ban, approved by President Bola Tinubu, aims to generate around $300 million annually in the short term and transform Nigeria into a global supplier of refined shea butter, oil, and other derivatives.
According to Vice President Kashim Shettima, the decision is a “pro-value addition policy” designed to secure raw materials for local processing factories and enable industries to run at full capacity, thereby boosting rural income and jobs. Shettima emphasized that the ban is not an anti-trade policy, but rather a measure to industrialize, transform rural areas, empower women, and expand Nigeria’s global trade footprint.
Nigeria produces nearly 40% of the world’s shea products, but currently accounts for only 1% of the $6.5 billion global market share. The government hopes to increase this share significantly, with a projected 10-fold increase in earnings by 2027. The Minister of Agriculture and Food Security, Abubakar Kyari, noted that the shea sector has the potential to generate over $300 million annually in the short term and position Nigeria to capture a significant share of the projected $9 billion global market by 2030.
The ban is expected to benefit local processors, who currently operate at only 35-50% capacity due to the loss of over 90,000 metric tonnes of raw shea nuts to informal cross-border trade each year. The government believes that by restricting raw exports, it can secure domestic supply, enable processors to operate at full capacity, and lay the foundation for Nigeria to transition from exporting raw kernels to exporting high-value derivatives.
The move is also seen as a way to empower women, who make up 90% of shea pickers and processors. Investment in the shea value chain is expected to translate into women’s empowerment, rural job creation, and sustainable livelihoods, aligning with the Tinubu administration’s focus on women empowerment and national economic development.
The temporary ban is subject to review after six months, and the government has announced plans to prioritize access for Nigerian shea butter and oil into the Brazilian market, with negotiations expected to be completed within the next three months. The move is seen as a significant step towards transforming Nigeria’s shea industry and increasing its global competitiveness.
