FG Slams Another Year-Long Ban on Raw Shea Exports

The Federal Government has extended its ban on the exportation of raw shea nuts for another year, in a move officials said was aimed at accelerating domestic industrial growth within the shea value chain.

President Ahmed Bola Tinubu approved the extension, shifting the new expiry date of the restriction to 25 February 2027. The ban, first introduced in August 2025, was part of a broader strategy to discourage the export of raw agricultural commodities and promote value-added processing within Nigeria.

According to the government’s directive, all previous waivers granted to companies to export raw shea nuts had now been cancelled. Instead, the administration has ordered relevant ministries and agencies to develop a national framework that would prioritise local processing, enhance quality standards and position shea products for the global market.

A key part of this structure would be coordinated through the Nigerian Commodity Exchange (NCE), which would oversee export procedures and market alignment for processed shea products.

Economic Rationale

Officials argue that exporting raw nuts deprives the country of significant revenue. Processed shea butter reportedly commands 10–20 times more value on the international market than raw nuts, suggesting substantial potential for income growth, job creation and industrial expansion.

Nigeria currently produces about 40% of the world’s shea nuts, yet earns only a tiny fraction of global shea-based product revenue due to low domestic processing capacity.

Stakeholder Reactions

Reactions within the shea industry remain mixed. Some processors and investors have welcomed the move, calling it a bold step toward transforming the sector and empowering rural communities. However, other stakeholders—particularly pickers and small-scale traders—are calling for clearer regulations, including a licensing system to protect vulnerable women who dominate shea collection in many rural areas.

Analysts say the policy could catalyse Nigeria’s industrialisation efforts if properly implemented, but warn that limited local processing infrastructure may pose short-term challenges.

Outlook

With the new policy direction, the government hopes to shift Nigeria from being a major supplier of raw materials to a competitive exporter of higher-value shea products. The coming months will likely determine how effectively the reforms are implemented and how quickly the industry adapts to the ban.

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