Manny Ita –
President Bola Tinubu has approved a one-year extension of the federal government’s ban on the export of raw shea nuts, pushing the restriction to remain in force until February 2027 as part of efforts to stimulate domestic processing, create jobs and strengthen Nigeria’s agro-industrial value chain.
The extension, officials said, is aimed at compelling exporters to channel raw shea produce into local factories rather than shipping unprocessed nuts abroad, where most of the value addition traditionally occurs. Nigeria is one of the world’s major producers of shea nuts, but stakeholders have long lamented that the country earns far less than potential revenue because most exports leave in raw form.
According to the Presidency, the policy is designed to transform the shea sector from a largely subsistence activity into a structured industrial ecosystem capable of producing butter, cosmetics ingredients, pharmaceuticals inputs and food products for both domestic consumption and export. “The extension is intended to consolidate gains already recorded and accelerate investment in local processing capacity,” a government official familiar with the decision said.
Tinubu emphasized that exporting raw agricultural commodities deprives the country of jobs, foreign exchange earnings and technological development, noting that value addition within Nigeria would generate significantly higher economic returns. “We must move from being exporters of raw materials to producers of finished and semi-finished goods,” he stated, describing the shea industry as a strategic sector with untapped potential.
The government also indicated that the policy would particularly benefit rural communities across the Middle Belt and parts of northern Nigeria, where shea trees grow naturally and collection of the nuts serves as a major source of income for women. By encouraging domestic processing plants, authorities expect increased demand for locally harvested nuts, improved pricing for farmers and expanded employment opportunities along the supply chain.
Industry players have expressed mixed reactions, with some processors welcoming the extension as necessary protection for emerging local factories, while exporters warned that enforcement challenges and limited processing capacity could disrupt trade flows in the short term. Nonetheless, officials insisted that the long-term objective is to build a competitive shea-based manufacturing sector capable of rivaling global producers.
The government added that supportive measures, including access to finance, infrastructure development and technical assistance, would accompany the export restriction to ensure that local processors can absorb the increased supply of raw materials. “This is not merely a ban; it is part of a broader industrial policy to reposition Nigeria in the global shea value chain,” another official said.
The renewed restriction underscores the administration’s broader push toward import substitution, non-oil exports diversification and rural industrialization, as authorities seek sustainable pathways to economic growth beyond crude oil dependence. If effectively implemented, analysts say the policy could significantly increase Nigeria’s share of the global shea butter market while deepening domestic manufacturing capacity.
