Nigeria Extends Raw Shea Nut Export Ban for One Year to Boost Local Processing

Tinubu Administration Reinforces Commitment to Value Addition

Abuja, Nigeria – President Bola Tinubu has approved a one-year extension of the ban on the export of raw shea nuts, a policy designed to significantly boost domestic processing and industrial development within Nigeria. The extended prohibition will be in effect from February 26, 2026, to February 25, 2027. This decision follows an initial six-month temporary ban imposed in August 2025, signaling the administration's sustained focus on transforming Nigeria's shea industry.

The extension was officially announced on Wednesday by the President's Special Adviser on Information and Strategy, Bayo Onanuga. He stated that the move 'underscores the administration's commitment to advancing industrial development, strengthening domestic value addition, and supporting the objectives of the Renewed Hope Agenda.'

Strategic Economic Imperatives

The core rationale behind the ban is to address the significant disparity between Nigeria's production volume and its earnings in the global shea market. Nigeria is a leading producer, accounting for approximately 40 percent of the global shea nut supply. However, the country captures only about 1 percent of the estimated $6.5 billion global market share for shea products. This is largely due to the export of raw nuts rather than processed shea butter, which fetches significantly higher prices. Processed shea butter can command between 10 and 20 times the price of raw nuts in international markets.

The government aims to generate $300 million annually in the short term from the refined shea sector, with an ambitious target of a tenfold increase by 2027. This strategy is intended to improve livelihoods in shea-producing communities, expand Nigeria's export base with value-added products, and create more jobs.

Implementation and Regulatory Framework

To ensure the effective implementation of the extended ban, President Tinubu has authorized several key measures:

• The Ministers of the Federal Ministry of Industry, Trade and Investment and the Presidential Food Security Coordination Unit (PFSCU) will coordinate a unified, evidence-based national framework for the shea value chain.
• An export framework developed by the Nigerian Commodity Exchange (NCX) has been adopted.
• All waivers previously granted for the direct export of raw shea nuts have been withdrawn.
• Any surplus raw shea nuts must now be exported strictly through the NCX framework, adhering to approved guidelines.
• The Federal Ministry of Finance has been directed 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.

Shea nuts, harvested from trees predominantly found in Nigeria's Savanna belt, are the raw material for shea butter, a product widely utilized in cosmetics, pharmaceuticals, and food production due to its moisturizing, anti-inflammatory, and antioxidant properties.

Challenges and Future Outlook

While the policy is lauded for its potential to foster industrial growth, some critics have raised concerns regarding Nigeria's current capacity to process all its shea output, suggesting that the ban could negatively impact farmers' profits. Analysts have also pointed to existing challenges such as a lack of modern processing infrastructure, limited access to credit for women harvesters, and potential disruptions to global beauty industry supply chains. Exporters have reported losing long-standing buyers due to the initial ban.

Despite these challenges, the Nigerian government remains steadfast in its commitment to policies that promote inclusive growth, expand local manufacturing, and position the nation as a competitive player in global agricultural value chains.