Dike Onwuamaeze

Alliance for Economic Research and Ethics (AERE) has cautioned that the ban on export of shea nuts by the federal government without adequate transition and sector-wide consultation would undermine investors’ ongoing commitments, investment plans, and livelihoods.  

Chairman of AERE, Hon. Dele Kelvin Oye, gave the caution yesterday in a press release titled “Urgent Call for Clarification on Nigeria’s Shea Nut Export Ban.”

AERE’s caution followed President Bola Tinubu’s approval on Tuesday of temporary ban on export of shea butter for six months in a bid to transform Nigeria from an exporter of raw shea nut to a global supplier of refined shea butter, oil and other derivatives.  

Oye said, “While we recognise and commend the administration’s commitment to value addition, we caution that immediate policy reversals without adequate transition and sector-wide consultation risk undermining ongoing commitments, investment plans, and the livelihoods of many members of AERE’s trade networks.” 

He drew government’s attention to the potential risks of poor implementation of a good policy and requested clarification and direction from Tinubu in order to ensure that his good policies were not poorly executed. 

According to Oye, the first step would be a clear communication strategy that would inform stakeholders on how the policy would help them and how they can take advantage of it.

He added that it was vital for government to provide information on financing, workforce training, technical assistance, upgrading of local processing facilities and other options available to support the transition process by relevant government agencies.

He also suggested that a phased implementation plan with measurable milestones and a transparent timeline was achievable through multi-stakeholder consultation. 

Oye argued that staged implementation would avoid disruption and losses on existing local and international shea nut contracts.

He said, “For many exporters and processors, this six-month window is a critical phase for capital recovery and project ramp-up,” adding that Nigeria should mitigate the risk of capacity constraints and supply gaps in order to succeed in shea nut industrialisation.

According to him, “Given the perishable nature of agriculture products and the limited shea nut processing capacity, government will have to step in to purchase all the current raw output and unsold stock and sell to willing processors.”    

He stated that those countries implementing “a nation first industrial policy” had always relied on their respective governments’ support. 

Oye said, “This government purchase support will be a welcome intervention for the informal sector by providing robust transition support, avoid smuggling, improve compliance and revenue collection.”

He stated that stable, predictable policy environments was important for Nigeria’s international trade relations as the country “still hopes to export processed shea nut butter and products to the same export markets.

“For this reason, sustaining Nigeria’s standing in global markets, bilateral engagements particularly with partner countries seeking stable predictable policy environments is important.”

He stated that a phased consultative approach was needed because “a staged timeline gives processors, exporters, and financial institutions time to invest in upgrading refining, quality control and packaging to meet export standards and preserve and grow existing commitments.

“A managed transition keeps current contracts intact while guiding industry stakeholders toward higher-value activities.”

Oye cited Malaysia, Indonesia, India and Ghana as good case studies in the matter.

He explained, “Ghana’s planned approach to similar policy shifts thereby allowing producers to adjust, upgrade, and meet new standards without abruptly terminating existing engagements. 

“Therefore, we hereby appeal for government to define a transition period with explicit targets for processing capacity, quality standards, and export diversification while protecting ongoing contracts and poor vulnerable stakeholders in the value chain.”   

Oye stated that the Alliance for Economic Research and Ethics believed in the potential of Nigeria’s shea industry and its capacity to contribute significantly to our economy.

“However, we must approach policy changes with robust monitoring, digital market intelligence, stakeholder feedback and multi-agency cooperation thereby ensuring that the interests of all stakeholders are taken into account.”

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