Nigeria’s recent ban on shea nut exports has sent shockwaves through the industry, with many producers expressing concern over the sudden move. The West African nation is the world’s largest producer of shea nuts, accounting for approximately 40% of global supply. However, it currently captures only 1% of the $6.5 billion global market share for shea products.

The six-month ban, announced by the government in late August, aims to boost local production of shea butter and other related products. According to Vice President Kashim Shettima, the policy is designed to generate around $300 million annually and help domestic factories operate at full capacity. The move is also intended to increase rural incomes and create jobs.

Despite the potential long-term benefits, the ban has already started to affect shea nut producers and sellers. Many have reported a significant drop in prices, with 25 kilograms of nuts now selling for 15,000 naira, down from 35,000 naira. The sudden loss of income has left many producers, mostly women, struggling to make ends meet.

Critics argue that the ban was implemented without adequate consultation or planning, disrupting contracts between producers and buyers. The few processing companies that exist in the country are likely to benefit from the ban, potentially creating a monopoly. Economists emphasize that moving up the value chain is crucial for a country’s economic development, but this requires careful planning and execution.

The shea nut industry is not the only sector where Nigeria has struggled to add value to its raw materials. The country’s oil wealth has not translated into significant economic benefits, with much of its agricultural output being exported as raw materials. The government’s decision to ban shea nut exports is part of a broader effort to transform the economy and increase local production.

As the ban continues, producers and sellers are bracing for further losses. Trucks filled with nuts have been turned back due to cancelled orders, and many are unsure how they will recover from the financial losses. The Nigerian government has announced that the ban will be reviewed after six months, but for now, the industry remains in a state of uncertainty.

The impact of the ban on shea nut producers and the broader economy will be closely watched in the coming months. While the government’s intentions may be to boost local production and increase incomes, the sudden and drastic nature of the ban has raised concerns about the potential consequences for those who rely on the industry for their livelihoods.