Presidential Directive on Shea Nut Exports
President Bola Tinubu has approved a one-year extension of the ban on the export of raw shea nuts, a policy set to run from February 26, 2026, to February 25, 2027. This decision, announced by the President's Special Adviser on Information and Strategy, Bayo Onanuga, reinforces Nigeria's commitment to industrial development and domestic value addition under the 'Renewed Hope Agenda'. The initial six-month temporary ban was first implemented in August 2025.
Strategic Rationale for Value Addition
The primary objective of the extended ban is to boost local processing capacity, improve the livelihoods of communities involved in shea production, and expand Nigeria's export base through value-added products rather than raw commodities. Nigeria, despite producing nearly 40 percent of the global shea nut supply, currently captures only 1 percent of the estimated $6.5 billion global market share. Processed shea butter can command between 10 and 20 times the price of raw nuts in international markets, highlighting the economic potential of local processing. The government aims to generate approximately $300 million annually in the short term, with a projected tenfold increase by 2027.
Implementation and Enforcement Measures
To ensure effective implementation, President Tinubu has authorized the Ministers of the Federal Ministry of Industry, Trade and Investment and the Presidential Food Security Coordination Unit (PFSCU) to coordinate a unified national framework for the shea value chain. This framework will align industrialization, trade, and investment priorities. Furthermore, the President approved the adoption of an export framework developed by the Nigerian Commodity Exchange (NCX) and directed the withdrawal of all previously granted waivers for the direct export of raw shea nuts. Under the new directive, any surplus raw shea nuts must be exported strictly through the NCX framework. The Federal Ministry of Finance has also been instructed to establish a dedicated NESS Support Window to enable the Ministry of Industry, Trade and Investment to pilot a Livelihood Finance Mechanism aimed at strengthening production and processing capacity.
Early Impact and Future Outlook
Early indicators suggest the policy is gaining traction. Reports indicate a 5 percent rise in crude shea oil exports and a significant 250 percent increase in butter exports within a single season. Domestic processing volumes have expanded from 15,000 metric tonnes to approximately 70,000 metric tonnes, and farm gate prices have strengthened. These developments signal a maturing industry moving up the value chain, with the long-term objective of increasing Nigeria's share of the global shea market value and reducing the profit share currently captured by foreign brands and international marketers.
5 Comments
Leonardo
While the push for local processing and increased revenue is a great long-term vision, the government must ensure adequate support and infrastructure for small farmers to adapt to this change.
Raphael
The goal of capturing more of the global market is ambitious and necessary, yet we must ensure quality control and international standards are met consistently to compete effectively with established brands.
Leonardo
It's positive to see farm gate prices strengthening, however, policymakers need to closely monitor how this impacts international buyers and potential trade relations in the long run.
Donatello
This 'strategy' will just benefit a few big processors, not the average person.
Leonardo
This ban will create more jobs and empower local communities. Well done!