Raw Shea Nut export ban; a win for Nigeria, West Africa— Stakeholders say

West Africa stakeholders have thrown their weight behind the ban on export of raw raw shea nuts. According to stakeholders across the West African corridor, value addition for shea nut has been a big topic. “Regional neighbours such as Ghana, Burkina Faso, Mali, and Togo have already imposed restrictions to protect their industries, leaving Nigeria as the outlier and a hotspot for opportunistic and unregulated buying” says the Minister for Agriculture and Food Security, Abubakar Kyari. Another stakeholder who chose to remain anonymous emphasized the broader regional significance; “the synchronized action across West Africa is a powerful signal to the global market. Nigeria should not just be suppliers of raw materials; the country should be manufacturers and exporters of finished goods. This collective stance by shea-producing nations will give Africa much needed stronger negotiating power and ensure that the wealth generated from its natural resources benefits its people, communities and economies.”
After a very long time, it appears West African nations are taking a united and collective stand to ensure their resources are managed well for the betterment of the region. Many of the stakeholders who expressed enthusiasm for the ban are hopeful that this is the beginning of a new trend where value addition is domesticated in Africa, thereby reversing the historic trend of exporting raw materials and importing processed goods.
Others, despite commending the administration’s commitment to value addition, have urged the Government to give more clarity as to the implementation and enforcement of the new policy, to prevent smuggling and other risks. On the other hand, the government has announced that within the next three months, Nigerian shea butter and oil will have prioritized access into the Brazilian market; an opportunity, if well leveraged, that can bring huge gains to the industry. The decision follows a rapid assessment by the Presidential Food Systems Coordinating Unit (PFSCU). The assessment revealed that despite producing nearly 40% of the world’s shea nuts; an estimated 350,000 metric tonnes annually, Nigeria captures less than 1% of the global shea market, valued at $6.5 billion.
This strategic policy is designed to protect and grow Nigeria’s domestic shea industry by halting the annual loss of over 90,000 metric tonnes of raw shea to informal cross-border trade. The ban will secure raw materials for local processors, who currently operate at only 35-50% capacity—boost jobs and incomes in rural communities, and protect a value chain where 95% of pickers and processors are women. The decision positions Nigeria alongside regional leaders in shea production, including Ghana, Togo, Mali, and Burkina Faso, which have already implemented similar restrictions to develop their local processing industries and retain value within their economies. Eniola Akindele, Data and Impact Assessment Manager of the Presidential Food Systems Coordinating Unit (PFSCU), underscored the untapped potential in the Shea value chain ‘’Shea has the potential to become Nigeria’s untapped goldmine. Beyond its well-known use in cosmetics, shea is increasingly in demand as a substitute for cocoa in global chocolate and confectionery industries. With the right processing capacity and investment platforms, Nigeria can transform its currently underutilized shea value chain into a billion-dollar industry, one that creates jobs, empowers women, and significantly boosts our foreign exchange earnings.”
Key agricultural stakeholders have hailed the presidential directive as a transformative game-changer for the Nigerian economy. Architect Kabir Ibrahim, National President of the Nigeria Agribusiness Group (NABG) and the All-Farmers Association of Nigeria (AFAN), stated: “This is a pivotal moment for Nigeria’s agricultural industrialization. For decades, we have exported raw shea nuts only to import the finished products at a much higher cost. This policy corrects that imbalance. It is a strategic imperative that will stimulate investment in local processing facilities, create thousands of jobs for our youth and women in rural communities, and significantly increase our national export earnings from a commodity we are blessed with in abundance. We commend His Excellency, President Tinubu, for this bold and visionary action, and we hope that this initiative is extended to other value chains as well.”