By: Erewunmi Peace

President Bola Tinubu has approved an immediate six-month ban on the export of raw shea nuts, in a bold move aimed at boosting local production, creating jobs, and increasing Nigeria’s share in the global shea value chain.

The announcement, made through the Presidency on August 26, 2025, signals a major shift in Nigeria’s agricultural export strategy. According to the statement, the policy will ensure more raw shea nuts are processed locally into butter, oil, and derivatives—high-value products widely used in cosmetics, food, and pharmaceuticals.

Why the Ban?

Nigeria is one of the world’s largest producers of shea nuts, but the country has historically exported them in raw form, missing out on billions of dollars in potential value-added income. The government estimates the new policy could generate $300 million annually in the short term, with potential for a tenfold increase by 2027 as domestic processing capacity grows.

Benefits and Expectations

Job Creation: The ban is expected to empower rural women and small businesses, as women dominate shea nut collection and processing in Nigeria.

Value Addition: Local manufacturers will now have a steady supply of raw materials for butter and oil production, improving Nigeria’s competitive edge in global markets.

Economic Diversification: The move aligns with Tinubu’s industrialization agenda and his drive to end Nigeria’s dependence on raw commodity exports.

Challenges Ahead

Industry experts, however, warn of short-term disruptions, including:

Processing bottlenecks, as local processors may not yet have the capacity to handle the increased supply.

Price volatility, with early reports indicating a 33% drop in raw shea prices following the announcement.

Risk of smuggling, due to porous borders and informal trade networks.

Despite these concerns, government officials maintain that the temporary ban will stabilize the sector and encourage investment in processing facilities across the country.

What’s Next?

The ban is expected to last six months, during which time the government will assess its impact on local industries and rural livelihoods. Stakeholders are encouraged to embrace value addition and prepare for a more competitive, export-driven shea industry.