Nigeria has imposed a six-month ban on the export of raw shea nuts, aiming to boost the domestic processing industry and increase the country’s share in the global shea products market. The government plans to review the ban after the six-month period.
Although Nigeria produces nearly 40 percent of the world’s raw shea nuts, it currently holds only 1 percent of the $6.5 billion global shea products market. The ban is intended to transform the country from an exporter of raw shea nuts to a global supplier of refined shea butter, oil, and other derivatives. The policy is projected to generate $300 million annually in the short term, with expectations of reaching $3 billion by 2027.
However, the Network of Practising Non-oil Exporters of Nigeria (NPNEN) has expressed concerns over the sudden implementation and lack of stakeholder consultation. Dr. Ahmed Rabiu, president of NPNEN, noted that while promoting local value addition is commendable, the approach risks causing significant disruptions across the shea value chain. He called for a phased restriction tied to measurable milestones and greater investment in processing facilities.
The ban has also caused a substantial drop in shea nut prices, which have fallen to 800,000 naira per ton, a 33 percent decline from previous levels.
As the government enforces the ban, it faces the challenge of balancing the promotion of local industry with the need to maintain investor confidence and uphold international trade commitments.
