Tinubu Targets $300m From Shea Industry, Bans Raw Nut Exports

President Bola Tinubu has approved a six-month temporary ban on the export of raw shea nuts from Nigeria as part of efforts to curb informal trade, boost local processing and strengthen the country’s shea value chain.

Vice President Kashim Shettima announced the directive on Tuesday during a multi-stakeholder meeting at the Presidential Villa, saying the ban takes immediate effect and will be reviewed at the end of the six-month period. He directed the Federal Ministry of Finance and other relevant government agencies to fast-track its enforcement.

2027: BVAS Failure Won’t Automatically Stop Election Collation — INEC Chairman

Shettima said the policy was not an anti-trade measure but a strategy to ensure that Nigerian processors have adequate access to raw materials, allowing factories and related industries to operate closer to full capacity. He said the initiative was expected to increase rural incomes, create jobs and transform Nigeria from an exporter of raw shea nuts into a major supplier of refined shea butter, oil and other derivatives.

According to the Vice President, Nigeria produces nearly 40 per cent of the world’s shea supply but currently accounts for only about one per cent of the estimated $6.5 billion global shea market. He said the government was targeting about $300 million in annual earnings from the sector in the short term, with a much larger increase projected by 2027.

Shettima also highlighted the potential impact of the policy on women, who dominate shea picking and processing. He said the government’s objective was to protect livelihoods while creating opportunities for greater value addition and increased participation in international trade.

Minister of Agriculture and Food Security, Abubakar Kyari, said Nigeria produces an estimated 350,000 metric tonnes of shea annually across 30 states, with the potential to increase production to nearly 900,000 metric tonnes. He said more than 90,000 metric tonnes of raw shea are estimated to be lost annually through informal cross-border trade, while domestic processors operate at only 35 to 50 per cent of installed capacity.

Kyari said the government’s assessment of the shea value chain showed the need to secure domestic raw materials and encourage investment in processing. He added that the sector has the potential to generate more than $300 million annually in the short term and enable Nigeria to capture a larger share of the projected $9 billion global shea market by 2030.

The minister further said the shea industry could become an important source of rural employment and women’s economic empowerment, noting that women account for about 90 per cent of shea pickers and processors. He said the temporary export restriction was intended to secure domestic supply, reduce informal trade and support Nigeria’s transition from exporting raw shea nuts to higher-value products such as shea butter, olein and stearin.