Temporary Suspension of Raw Shea Nut Export by the Federal Government of Nigeria
Introduction
The Nigerian Agribusiness Group (NABG) welcomes the Federal Government’s recent suspension of raw shea nut exports as a timely step to reposition Nigeria within the global shea value chain.
Nigeria supplies nearly 40% of the world’s raw shea nuts yet contributes less than 1% of the $6.5 billion global shea market. This paradox is both an economic and a social opportunity gap. The export suspension provides an avenue to pivot decisively toward value addition, inclusive processing, and job creation, rather than perpetuating the role of raw material supplier.
Why the Policy Matters
- Unlocking Economic Potential
Nigeria’s underperformance in the global shea market is not due to resource scarcity, but to systemic overreliance on raw exports. By processing shea locally into butter, oils, cosmetics, and derivatives, Nigeria can realistically generate $300 million in the short term and up to $3 billion annually by 2027. This aligns with broader economic diversification goals under the Renewed Hope Agenda.
- Regional Competitiveness
West African peers such as Ghana, Burkina Faso, and Ivory Coast have long implemented restrictions on raw shea exports. Their processing industries are thriving, creating thousands of jobs for rural women and significantly increasing foreign exchange inflows. Nigeria’s decision is, therefore, not an outlier, but an overdue alignment with proven strategies in the region.
- Social Inclusion and Women’s Empowerment
Shea remains a women-driven value chain, with an estimated 90% of rural shea collectors and processors being women. Prioritising local processing ensures these women are not just raw suppliers, but stakeholders in a profitable ecosystem, benefiting from improved incomes, access to markets, and capacity development.
Implementation Challenges
While the intent of the policy is commendable, successful implementation demands urgent attention to three key areas:
- Processing Capacity
Nigeria’s current refining and processing infrastructure for shea is limited. Without rapid investment in equipment, technology, and energy, processors will be unable to absorb the raw material glut created by the suspension.
- Contractual & Trade Commitments
Exporters who entered legitimate trade contracts before the suspension risk financial loss. Mechanisms must be created to protect them and avoid reputational damage to Nigeria in international markets.
- Infrastructure & Policy Support
Logistics, power supply, and financing continue to be bottlenecks. Without deliberate public-private collaboration to address these, processors may struggle, and the policy could risk underdelivering.
The Role of NABG
As the umbrella agribusiness platform, NABG is ready to work with government and international partners to ensure this policy delivers on its promise. Specifically:
- Facilitating Public-Private Partnerships to rapidly expand shea processing capacity.
- Supporting Smallholder Collectors, especially women, with training, financing, and access to cooperatives.
- Advocating for Transitional Relief Measures to protect exporters with existing contracts.
- Driving Market Linkages between Nigerian processors and global buyers in food, beauty, and pharmaceutical industries.
The six-month suspension of raw shea exports signals a necessary shift from raw extraction to industrial transformation, from exporting jobs abroad to creating them at home. NABG believes this moment must not be wasted. With pragmatic implementation, broad stakeholder engagement, and sustained investment, Nigeria can reposition itself as a global shea powerhouse, delivering prosperity for rural women, competitiveness for processors, and much-needed foreign exchange for the nation.
