The Nigerian government has imposed a temporary six-month ban on the export of raw shea nuts. The directive was announced by Vice President Kashim Shettima, who described the policy as a "pro-value addition" measure rather than an anti-trade one. The ban, which is effective immediately, aims to transform Nigeria from a raw material exporter into a global supplier of refined shea products like shea butter and oil.
The government's action is rooted in the stark disparity between Nigeria's production capacity and its market share. Vice President Shettima noted that while the country produces nearly 40 percent of the world's shea, it only accounts for a mere one percent of the $6.5 billion global market. The ban is projected to generate an estimated $300 million annually in the short term, with an ambitious target of a tenfold increase by 2027. The move is also intended to address the issue of informal cross-border trade, which has led to a significant shortage of raw materials for local processors. A rapid assessment of the shea value chain revealed that over 90,000 metric tonnes of raw shea are lost annually to this unregulated trade, leaving domestic processors to operate at only 35-50 percent capacity despite a national installed capacity of 160,000 metric tonnes.
The policy aligns with a growing trend among other major West African shea-producing countries, including Burkina Faso, Mali, Togo, and Ghana, which have implemented similar restrictions in the past two years. This collective action is reshaping the sub-regional value chain as countries seek to gain more economic value from their agricultural exports. The Nigerian government also frames the ban as a measure to empower women, who constitute an estimated 90 percent of shea nut pickers and processors in the country. By protecting the industry, officials believe they are also safeguarding the livelihoods and dignity of millions of women.
While the ban has been commended for its strategic intent, some industry experts have raised concerns. Ikemesit Effiong, a partner at Lagos-based risk advisory firm SBM Intelligence, told the Associated Press that an export ban alone may not be sufficient to solve the supply-gap issue, and that more investment is needed to grow domestic industries. Other stakeholders have called for a clear transition plan and broader consultation to avoid disrupting existing contracts and investment plans. The government's decision, however, signals a strong commitment to local value addition and economic diversification.
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