Industry stakeholders have expressed mixed reactions
to President Bola Tinubu’s recent decision to suspend the export of raw shea
nuts for six months.
The policy, announced Tuesday, is aimed at stimulating
local processing, strengthening Nigeria’s agro-economy, and boosting non-oil
export earnings. Shea, often called “women’s gold,” provides livelihoods
for thousands of rural women, particularly in northern Nigeria.
Concerns over Implementation
Former NACCIMA President, Hon. Dele Kelvin Oye,
welcomed the value-addition push but cautioned against hasty implementation
without adequate consultation. He warned that poor execution could undermine
investments and livelihoods.
Some exporters also raised concerns, noting that
existing contracts worth millions of dollars may be jeopardized, potentially
leading to defaults and debts.
Others warned of possible smuggling across Nigeria’s porous borders if domestic
refining capacity remains weak.
Agricultural expert Grace Ajayi (University of
Abuja) said processors face high energy costs, poor infrastructure, and limited
credit access. “If enforced without addressing these challenges, farmers and
collectors may suffer losses because processors won’t be able to absorb all the
supply,” she said.
Regional Context
A government policy document notes that Nigeria is now
the only country in the sub-region still allowing raw shea exports. Burkina
Faso, Mali, Ghana, and Togo have all banned raw exports to boost local value
addition.
This loophole, the government says, has turned Nigeria into a hub for
opportunistic foreign buyers, worsening scarcity for local processors.
The document projects the ban could unlock $300
million annually in the short term, if enforced efficiently.
Opportunities in Value Addition
Trade analyst Dr. Ibrahim Musa stressed that
Nigeria, despite being the world’s largest shea producer, benefits little from
the $6.5 billion global market.
“Processing locally into shea butter, cosmetics, and other products can
increase foreign exchange earnings, reduce oil dependency, and create jobs,” he
said, pointing to Ghana and Burkina Faso as examples of success.
Implementation Timeline
According to official documents, implementation will
be phased:
Presidential Position
President Tinubu described the ban as a step to end
Nigeria’s role as an exporter of raw poverty.
“Nigeria’s shea is our green wealth. We produce nearly
40% of the world’s supply, yet capture less than 1% of its $6.5bn global
market. That imbalance ends now,” he said.
The government targets a tenfold increase in export
revenue by 2027, with 99% of that coming from refined shea products.
Bigger Picture
The move comes as Nigeria’s non-oil exports rose to $3.23
billion in H1 2025, up 19.6% from the same period last year, according to
NEPC data.
Comments:
Leave a Reply