₦airaland Forum

Nigeria Extends Ban on Raw Shea Nut Exports for One Year to Boost Local Processing

By Enemona Samuel Endurance

President Bola Tinubu has approved a fresh one-year extension of the ban on the export of raw shea nuts, reinforcing the Federal Government’s push toward domestic value addition and industrial growth.

The renewed directive takes effect from February 26, 2026, to February 25, 2027, according to an official statement issued in Abuja by the President’s spokesman, Mr Bayo Onanuga.

The policy extension forms part of broader economic reforms tracked under Nigeria News Today and signals the administration’s strategy to reposition Nigeria’s shea industry for stronger export earnings through processed products rather than raw commodity shipments.

Industrial Policy Shift Toward Value Addition

The Presidency stated that the extension underscores the government’s determination to deepen local processing capacity and stimulate manufacturing-led growth.

“The decision underscores the administration’s commitment to advancing industrial development, strengthening domestic value addition, and supporting the objectives of the Renewed Hope Agenda,” the statement said.

According to the Presidency, the export restriction is designed to:

1. Encourage domestic processing of shea nuts into higher-value products.

2. Create jobs across shea-producing communities.

3. Improve incomes along the agricultural value chain.

4. Enhance Nigeria’s non-oil export earnings.

The move aligns with the government’s broader strategy of transitioning Nigeria from raw commodity exports to value-added industrial exports.

Background to the Policy

In August 2025, President Tinubu initially approved a six-month temporary ban on raw shea nut exports to curb informal trade and protect investments made by local processors.

The initial directive generated mixed reactions within the non-oil export sector, with some exporters raising concerns about potential foreign exchange losses and supply chain disruptions.

Despite those concerns, the government maintained that domestic processing offers stronger long-term economic benefits compared to exporting unprocessed agricultural commodities.

Implementation Framework Tightened

To ensure effective implementation of the renewed ban, the President authorised the Federal Ministry of Industry, Trade and Investment to collaborate with the Presidential Food Security Coordination Unit in developing a unified national framework for the shea value chain.

Key measures announced include:

- Adoption of an export regulatory framework developed by the Nigerian Commodity Exchange.

- Immediate withdrawal of all existing waivers allowing direct export of raw shea nuts.

- Mandatory routing of surplus production through the approved exchange framework to ensure transparency and traceability.

- Facilitation of access to a dedicated NESS Support Window by the Federal Ministry of Finance.

The government also approved a Livelihood Finance Mechanism aimed at improving processing efficiency, production capacity, and international competitiveness within the shea industry.

Economic Implications

Shea nuts, harvested primarily across Nigeria’s savanna belt, are oil-rich agricultural commodities widely used in cosmetics, pharmaceuticals, confectionery, and edible oil production.

When processed into shea butter, the product commands significantly higher prices in international markets compared to raw nuts.

Industry analysts note that sustained enforcement of the export restriction could:

1. Strengthen Nigeria’s non-oil export base.

2. Stimulate rural industrialisation.

3. Increase employment within agro-processing clusters.

4. Improve long-term foreign exchange sustainability.

However, stakeholders remain divided, with exporters and processors holding contrasting views on the short-term impact of the policy.

This report is part of The Business Bureau’s ongoing coverage of Nigeria’s industrial and trade policy developments under Nigeria News Today.

Source: The Business Bureau

Best thing to do at this time to help domestic production.

Jagaban Borgu
Dike Si Mba 1 of anambra

now u fit only export processed oils and butter of shea, but not d nuts for one year

Oga at the top has spoken

I hope they will not wail on this too

Domestic production with high cost of petrol.


Babablu Bulabu policies.

Export anything exportable, na wetin go the boost the naira fast be that.

jmoore:
Domestic production with high cost of petrol.


Babablu Bulabu policies.

This one is going to wail for at least 5 more year.

What should have been done? The govt should continue subsidizing fuel price so the price can be cheaper?

jmoore:
Domestic production with high cost of petrol.


Babablu Bulabu policies.

Let's get to put our power sector in order na . Please for God's sake! Please na! We just demand steady power supply. The rest will sort itself gradually . We will manufacture things and use withing the county.

Please . I beg na. Can we all tell Asiwaju this? We need this. Switching to Solar power in Aso Rock makes it seem like even the government have given up on national grid power supply. We, the citizens, what then can we do?

DMCA:
I hope they will not wail on this too

The way tinubu is treating nigeria so shall your life and generation be too

Another pedestrian policy, for data boiz to propagate


What's the industrial use of Shea nut, why not ban cocoa and cashew export

That one na his cronies dey involved

Zocalite:
The way tinubu is treating nigeria so shall your life and generation be too

because of shea nuts?
It can only be you people from one particular place

politics asides.

this is a really smart move.

processed shea products have a wayyy significant higher export price than the raw nuts.

if they extend this to cocoa as well, it'd be good.

DMCA:
because of shea nuts?
It can only be you people from one particular place

Unlike Shea nuts byproducts which are mostly for use on skin, and not ingested,cocoa byproducts are mostly ingested as food.

Europeans and North Americans will not buy most cocoa byproducts that are to be ingested without further processing if they're produced in Nigeria.

Nigeria's does not have a good reputation for adhering to international food manufacturing standards.

For now, most of our cocoa-related exports will be mostly unprocessed cocoa.

jmoore:
Domestic production with high cost of petrol.


Babablu Bulabu policies.

People have forgotten Bulaba Blu now 😂

FILEBE:
Let's get to put our power sector in order na . Please for God's sake! Please na! We just demand steady power supply. The rest will sort itself gradually . We will manufacture things and use withing the county.

Please . I beg na. Can we all tell Asiwaju this? We need this. Switching to Solar power in Aso Rock makes it seem like even the government have given up on national grid power supply. We, the citizens, what then can we do?

they will learn how to process it to standard.
na so dem do, now local rice production don increase

There should be no need to force trade. Why will farmers prefer to export rather than sell to locals?. This policy is giving an unnecessary advantage to some people.

Go to chatgpt.com
Ask which countries have pursued similar policies as part of economy reform after economic crisis
What did they do
What was the outcome

Gajagojo:
Go to chatgpt.com
Ask which countries have pursued similar policies as part of economy reform after economic crisis
What did they do
What was the outcome

Will the FG also regulate price? If you have only one customer then the person can dictate price. Also a local buyer that is serious can easily secure supply by buying at a premium. I think we pay more for cassava on average than international price. Any serious local user of any produce will not have any problem securing supply even from abroad, having it here is merely an advantage that should not be abused.
People are now asking for strange things. Some say the auto assembly sector should be 'protected' like the cement sector which will obviously lead to us paying double what peer nations pay for brand new cars.
Shea nut processing companies should be supported in other ways different from forcing people to sell to them. We can still have them here even without having any shea nut at all

lawani:
Will the FG also regulate price? If you have only one customer then the person can dictate price. Also a local buyer that is serious can easily secure supply by buying at a premium. I think we pay more for cassava on average than international price. Any serious local user of any produce will not have any problem securing supply even from abroad, having it here is merely an advantage that should not be abused.
People are now asking for strange things. Some say the auto assembly sector should be 'protected' like the cement sector which will obviously lead to us paying double what peer nations pay for brand new cars.
Shea nut processing companies should be supported in other ways different from forcing to sell to them. We can still have them here even without having any shea nut at all

What are you talking about ?
Price of what?
You have not communicated anything meaningful
I am certain you are a brilliant fellow but communication means you articulate your thoughts coherently

The purpose of export ban is to force relocation of value addition into Nigeria so that more jobs are created and more wealth retained here that is why I said what I said

I really don't see the link to what you are saying

For me is a good initiative

Would make more sense in the oil and gas sector

We could be supplying petrol to the whole of West Africa

Gajagojo:
For me is a good initiative

Would make more sense in the oil and gas sector

We could be supplying petrol to the whole of West Africa

Which petrol?

Is it the one from dangote or the one imported from abroad?

Or do you mean crude oil?

Tenses:
Which petrol?

Is it the one from dangote or the one imported from abroad?

Or do you mean crude oil?

I think you better find those on your level to talk to please

Gajagojo:
I think you better find those on your level to talk to please

I think you should stop spewing rubbish on an open forum.

You dey nairaland dey form level.

Let's meet at LinkedIn and compare level. I dare you!!

Tenses:
I think you should stop spewing rubbish on an open forum.

You dey nairaland dey form level.

Let's meet at LinkedIn and compare level. I dare you!!

If you need dares it is obvious we are not on the same level or brainwavelength

I don't need to meet you or anyone

So just stay away from me