The Nigerian government’s recent ban on shea nut exports has resulted in a significant drop in prices, with the Centre for the Promotion of Private Enterprise (CPPE) reporting a 30% decline. This development has caused disruptions in the shea nut value chain, affecting farmers, aggregators, exporters, and logistics providers.
The six-month export ban, which took effect on August 26th, 2025, aims to boost the domestic value chain and drive Nigeria’s industrialization. However, the CPPE has expressed concerns over the instantaneous implementation of the policy, stating that it has led to severe disruptions in the shea nut industry. The organization has suggested that a phased transition approach would be more effective, allowing businesses to adjust their operations and minimize the impact on stakeholders.
According to the CPPE, the price collapse has eroded the incomes of farmers and aggregators, with existing export contracts facing potential default. This exposes exporters to legal and reputational risks. The organization has emphasized the need to protect primary producers, ensuring that farmers receive fair market value for their produce and sustaining rural livelihoods.
Suppliers of shea nuts in Niger and Kogi States have reported a significant drop in prices since the ban took effect. The CPPE has urged the government to reconsider its approach, introducing clear timelines for phasing out raw exports and allowing businesses to adjust accordingly. The organization’s director, Muda Yusuf, highlighted the importance of avoiding policies that force primary producers to subsidize processors indirectly.
The shea nut industry is a significant sector in Nigeria, providing livelihoods for many farmers and aggregators. The current disruptions have raised concerns over the potential long-term impact on the industry and the economy as a whole. As the situation continues to unfold, it remains to be seen how the government will respond to the concerns raised by the CPPE and other stakeholders. The next steps taken by the government will be crucial in determining the future of the shea nut industry in Nigeria.