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:
- Encourage domestic processing of shea nuts into higher-value products.
- Create jobs across shea-producing communities.
- Improve incomes along the agricultural value chain.
- 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:
- Strengthen Nigeria’s non-oil export base.
- Stimulate rural industrialisation.
- Increase employment within agro-processing clusters.
- 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.
