Centre for the Promotion of Private Enterprises, CPPE, yesterday, called on the Federal Government to urgently revisit the six months ban placed on raw shea-nut exports in order to salvage the industry from collapse. The call and counsel was contained in a statement signed by the Chief Executive Officer, CEO, CPPE, Dr Muda Yusuf, where the Federal Government was alerted on the negative signal the ban had sent to investors in the sector as their investments had been negatively impacted as a result of not really being consulted before the ban was announced by the Tinubu-led administration. Yusuf also pointed out that, “the instantaneous implementation of the ban has created severe disruptions in the shea nut value chain, which players ranging from farmers, aggregators, exporters, and logistics providers have been adversely affected and are in deep pains because of the sudden pronouncement. According to Yusuf, CPPE is saying such policy from the government should be “for a phased, consultative transition framework to safeguard investor confidence, preserve hard-won gains in non-oil exports, and ensure inclusive, market-driven growth.”
He also pointed out that, “Nigeria holds significant potential in the global shea nut market, accounting for an estimated 40% of global production. Moving up the value chain through local processing could generate jobs, foreign exchange, and industrial capacity. However, policy credibility is crucial: sudden bans on exports with immediate effect introduce uncertainty, heighten risk, and undermine investor confidence—deterring investment not just in shea but across the broader non-oil export sector.”
Meanwhile, he said the announcement right now had caused daunting challenges that stakeholders are off balance as they are subjected to what they never envisaged. “Market Disruptions and Price Collapse: Shea nut prices have fallen by over 30% since the ban, eroding incomes of farmers and aggregators. Existing export contracts face potential default, exposing exporters to legal and reputational risks.Loan defaults loom large, as many exporters rely on bank financing for procurement and aggregation. Investor Confidence at Risk: Abrupt policy shifts send negative signals to investors, who may perceive higher policy risk in Nigeria.The progress made in non-oil exports—over $3 billion in the first quarter of 2025—could be reversed if confidence declines.
“Employment and Social Impact: The ban threatens thousands of jobs in cultivation, aggregation, logistics, and trade in shea-nuts. The policy effectively penalizes primary producers to benefit processors, creating a zero-sum scenario rather than a shared-growth model”, he said. However, the CPPE boss while acknowledging that Federal Government coming out to place a ban on shea-nut exports, which is intended to accelerate domestic value addition and support Nigeria’s industrialization drive, made some salient recommendations as a panacea or alternative to the ban.
He said “adopt a Phased Transition Approach: Introduce clear timelines for phasing out raw exports, allowing businesses to adjust operations. Permit fulfillment of existing export contracts to prevent defaults and maintain Nigeria’s credibility. Enhance Competitiveness of Local Processing: Address structural challenges—power supply, logistics, infrastructure, financing—to enable processors to purchase raw materials at market prices and still compete internationally.
“Promote innovation and efficiency in processing rather than reliance on artificially low input costs. Protect Primary Producers: Ensure farmers capture fair market value for their produce, sustaining rural livelihoods and incentivizing production. Avoid policies that force primary producers to subsidize processors indirectly. Institutionalize Stakeholder Engagement: Establish regular consultative platforms involving farmers, processors, exporters, and financiers.Improve policy predictability and transparency to build investor trust.”
