Hot Source•Temporary ban, a collective decision with sub-nationals, subject to review
•Shettima: Nigeria’s shea value will generate $300m annually in short term
Deji Elumoye in Abuja
To boost local production and create jobs President Bola Ahmed Tinubu yesterday approved a six-month temporary ban on the export of raw shea nut to curb informal trade and grow the country’s shea industry.
Tinubu said the ban, which was with immediate effect, was subject to review on expiration. He said it was specifically aimed at boosting Nigeria’s shea value chain to generate around $300 million annually in the short term.
Vice President Kashim Shettima who announced the president’s directive during a multi-stakeholder meeting at State House, Abuja, called on the Federal Ministry of Finance and other relevant government agencies to fast-track enforcement of the ban.
Speaking on the directive, Shettima said the decision was not “an anti-trade policy but a pro-value addition policy designed to secure raw materials for our processing factories and enabling industries run at full capacity thereby boosting rural income and jobs for our people”.
According to him, the decision “will transform Nigeria from an exporter of raw shea nut to a global supplier of refined shea butter, oil and other derivatives”.
The vice president stated that the latest move was about industrialisation, rural transformation, gender empowerment, and expansion of Nigeria’s global trade footprint.
On opportunities for job creation and income generation, he said, “Nigeria produces nearly 40 per cent of the global shea product, yet we account for only one per cent of the market share of $6.5 billion.
“This is unacceptable. We are projected to earn about $300 million annually in the short term, and by 2027, there will be a 10-fold increase. This is our target.”
Shettima explained that the ban was a collective decision involving the sub-nationals and the federal government with clear directions for economic transformation in the overall interest of the nation.
He said, “Government is not closing doors; we are opening opportunities. Mr President is currently in Brazil, and both countries have agreed to prioritise access for Nigerian shea butter and oil into the Brazilian market. This process will be completed within the next three months.”
The vice president highlighted the gender dimension of the policy, stating that “by protecting the shea industry, we are protecting livelihoods, dignity and opportunity for millions of our women.
“We are not closing doors; we are opening better ones. Today, we plant the seeds of an industry that will yield fruit for decades to come for our women, for our economy, and for Nigeria’s place in global trade.”
Earlier, Minister of Agriculture and Food Security, Senator Abubakar Kyari, explained how the country stood to benefit from the shea export ban.
Kyari regretted that despite being the world’s largest producer of shea nuts, contributing nearly 40 per cent of global supply, Nigeria captured less than one per cent of the multi-billion-dollar global shea economy.
He said, “Nigeria produces an estimated 350,000 metric tonnes of shea annually across 30 states, with the potential to reach nearly 900,000 metric tonnes. Yet our share of the $6.5 billion global market is less than one per cent.
“The Rapid Assessment of the Shea Value Chain, conducted by the PFSCU, Federal Ministry of Industry, Trade and Investment, and in close collaboration with the Federal Ministry of Agriculture and Food Security, provided the evidence that shaped this presidential directive.”
According to the minister, the assessment shows that over 90,000 metric tonnes of raw shea are lost each year in informal cross-border trade, even as Nigeria’s “processors operate at only 35 to 50 per cent capacity, despite a national installed capacity of 160,000 metric tonnes”.
Kyari further explained that while “regional neighbours, such as Ghana, Burkina Faso, Mali, and Togo, have already imposed restrictions to protect their industries,” Nigeria was vulnerably left “as the outlier and a hotspot for opportunistic and unregulated buying.
Underscoring the enormous potential of the shea trade for Nigeria, the minister stated that the shea sector “could generate more than $300 million annually in the short term and position Nigeria to capture a significant share of the projected $9 billion global market by 2030.
Kyari stated, “Shea is one of the few commodities where our country holds both a comparative and absolute advantage. With over five million hectares of wild-growing shea trees, Nigeria has the natural endowment to dominate not only in production but also in value-added processing.
“Shea is also identified in our Zero Oil Plan as a strategic non-oil export. With a projected global market growth from 6.5 billion dollars today to 9 billion dollars by 2030, Nigeria can position itself at the heart of this expansion.”
The minister stated that since 90 per cent of pickers and processors of shea were women, investment in the value chain would directly translate into women’s empowerment, rural job creation, and sustainable livelihoods. He said this aligned with the Tinubu administration’s focus on women empowerment and the pledge by the Federal Ministry of Agriculture and Food Security “not only to support the rural population but also to create a pathway for national economic development”.
Kyari explained, “The reasons for this presidential directive are clear. Without corrective action, Nigeria risked becoming a raw depot for opportunistic and illicit buyers, undermining our processors’ capacities, disempowering rural women, and forfeiting billions in potential export revenues.
“The PFSCU rapid assessment, which engaged over 2,000 pickers and 65 processors, confirmed the urgent need for action. Informal exports, estimated at 90,000 metric tonnes annually, are draining our domestic supply.
“With neighbours like Mali, Burkina Faso, and Togo already restricting raw exports, Nigeria risked being left as the region’s raw depot. The benefits of the temporary ban are equally compelling.
“It will secure domestic supply, enable processors to operate at full capacity, curb informal trade, and lay the foundation for Nigeria to transition from exporting raw kernels to exporting high-value derivatives such as butter, olein, and stearin.”
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