By Ahmed Ahmed
President Bola Tinubu has approved a one-year extension of the ban on the export of raw shea nuts, taking effect from February 26, 2026, to February 25, 2027.
The move is part of the administration’s broader strategy to deepen domestic processing, support industrial growth, and strengthen Nigeria’s position in the global shea industry.
Shea nuts, the oil-rich fruits from the shea tree predominantly grown in Nigeria’s Savanna belt, are the raw material for shea butter, a product widely used in cosmetics, skincare, haircare, and edible oils. The President’s decision seeks to prioritise value addition and ensure that local industries capture higher returns from Nigeria’s abundant shea resources.
Presidential spokesperson Mr. Bayo Onanuga explained that the extension aligns with the objectives of the Renewed Hope Agenda. “The policy underscores the government’s commitment to industrial development, strengthening domestic value addition, and improving livelihoods in shea-producing communities,” the statement read.
The President has tasked the Federal Ministry of Industry, Trade and Investment, alongside the Presidential Food Security Coordination Unit (PFSCU), to implement a unified, evidence-based national framework for the shea value chain. This framework will coordinate industrialisation, trade, and investment priorities while aligning with the Nigerian Commodity Exchange (NCX) export regulations. All previous waivers allowing raw shea nut exports have been withdrawn, and excess supply is to be channelled exclusively through the NCX framework.
To support local processing, the Federal Ministry of Finance will provide access to a dedicated NESS Support Window, enabling pilot initiatives such as a Livelihood Finance Mechanism to strengthen production and processing capacities. The government encourages local conversion of shea nuts into butter, which commands prices 10 to 20 times higher than raw nuts, enhancing income for rural communities.
Vice President Kashim Shettima, speaking during the initial ban announcement in August 2025, emphasised that the policy is strategic rather than punitive. “This is a pro-value addition policy designed to secure raw materials for our processing factories and enable industries to run at full capacity, thereby boosting rural income and employment,” he said.
Vice President Shettima noted that Nigeria produces nearly 40 percent of the world’s shea nuts but captures only about 1 percent of the $6.5 billion global market for processed shea products. He projected that the policy could generate $300 million annually in the short term, with potential for a tenfold increase by 2027 as local processing capacity expands.
The government also highlighted international market opportunities. Agreements with Brazil, where Nigeria is prioritising access for its shea butter and oil, are expected to be completed within months, opening a pathway for Nigerian value-added products in global markets.
“The extension of the export ban is intended to consolidate Nigeria’s industrialisation goals, create jobs, enhance local processing, and position the country competitively in the global shea products market,” Mr. Onanuga said.
Analysts say the policy signals a shift from raw commodity exports toward industrialised value chains, with implications for rural transformation, gender empowerment, and broader economic growth. By capturing more value domestically, Nigeria aims to generate higher revenue, create jobs along the supply chain, and strengthen livelihoods in shea-producing regions.
With the ban now extended to February 2027, the federal government continues to reinforce its commitment to inclusive growth, local manufacturing, and sustainable participation in global agricultural value chains.
