FG Extends Shea Export Ban, Targets $3bn Earnings

The Federal Government has reaffirmed its ban on the export of raw shea nuts, insisting that Nigeria must stop exporting raw commodities while importing finished products.

Speaking at the Shea 2026: Beyond Borders Conference in Accra, Ghana, Minister of State for Industry John Enoh said: “The era of exporting raw nuts while importing finished products must come to an end. The future lies in industrialisation, value addition, and regional integration.”

Nigeria produces between 350,000 and 500,000 tonnes of shea annually, nearly 40% of global supply, but captures only about 1% of the $6.5bn global market because most of its output is exported raw.

Processed shea butter, used in cosmetics, food, and pharmaceuticals, sells for 10–20 times the price of raw nuts, meaning most of the value is captured abroad.

In August 2025, the Tinubu administration imposed a six-month ban on raw shea exports, later extended to February 2027, requiring all exports to pass through the Nigeria Commodity Exchange.

The government says the policy aims to scale processed shea earnings from $65m currently to $300m in the near term, with potential growth to $3bn by 2027, as the global market expands to nearly $9bn by 2030.

However, the ban triggered a 33% drop in domestic raw shea prices within three days, hurting rural farmers and collectors who rely on sales for income.

Processing capacity exists for about 160,000 tonnes but operates at only 35–50% due to poor infrastructure and limited finance.

Nigeria’s stance aligns with other West African producers—Burkina Faso, Mali, Côte d’Ivoire, Togo, and Ghana—who have also restricted raw shea exports.

At the Accra conference, Nigeria’s Ali Saidu was appointed Chair of the Global Shea Alliance, marking the first time a Nigerian leads the global body.