FG Bans Export Of Raw Shea Nut To Boost Local Industry

The federal government has approved an immediate six-month ban on the export of raw shea nut, aimed at curbing informal trade, protecting the local shea industry, and enhancing value addition within Nigeria.

The temporary prohibition is part of a strategy to strengthen Nigeria’s shea value chain and is expected to generate approximately $300 million annually in the short term.

Vice President Kashim Shettima announced the presidential directive on Tuesday at a multi-stakeholder meeting held at the Presidential Villa, urging the Federal Ministry of Finance and other agencies to enforce the ban swiftly. He emphasized that the policy is designed not to restrict trade but to encourage local processing capacities, support rural incomes, and create jobs.

Shettima highlighted that Nigeria currently produces nearly 40% of the world’s shea nuts but captures only about 1% of the global $6.5 billion shea market—a gap the government aims to close.

He explained that the ban will help transform Nigeria from exporting raw shea nuts into a major global supplier of refined shea butter, oil, and derivatives, aligning with broader goals of industrialization, rural development, gender empowerment, and expanded global trade.

Agriculture Minister Abubakar Kyari supported the policy by outlining Nigeria’s untapped potential, noting the country produces about 350,000 metric tonnes of shea nuts annually with capacity to grow to nearly 900,000 tonnes.

He lamented that Nigerian processors currently operate at only 35–50% capacity due to raw material shortages caused by informal cross-border trade.

Kyari also pointed out that neighboring countries like Ghana, Burkina Faso, Mali, and Togo have already restricted raw shea exports to protect their industries, leaving Nigeria vulnerable to unregulated buying and informal trade.

The minister underlined that the shea sector offers a critical opportunity to generate over $300 million in the short term—and potentially capture a significant share of the projected $9 billion global market by 2030.

Since around 90% of shea product pickers and processors are women, the ban also promises broad social benefits through women’s economic empowerment, rural job creation, and sustainable livelihoods.

The government views the directive as essential to preventing Nigeria from becoming merely a raw material supplier and to unlocking the full economic potential of its vast shea resources.

The administration’s “Zero Oil Plan” identifies shea as a strategic non-oil export commodity, underscoring its importance to national economic development. The ban will be reviewed after six months, while efforts continue to open new international markets, including a priority deal with Brazil to boost Nigerian shea exports.