Manny Ita
The Federal Government of Nigeria has entered the final phase of a strategic six-month ban on the exportation of raw shea nuts, a move designed to pivot the nation from a primary producer to a dominant global hub for refined shea butter. The policy, which was approved by President Bola Ahmed Tinubu and announced by Vice President Kashim Shettima, aims to address a long-standing economic disparity: while Nigeria produces nearly 40% of the world’s shea nuts, it currently captures less than 1% of the $6.5 billion global shea market.
The directive, described by the Vice President as a “pro-value addition policy” rather than an anti-trade measure, seeks to secure raw materials for over 20 local processing plants that have historically operated at less than 30% capacity due to unregulated raw exports. By ensuring these factories run at full capacity, the government projects an immediate rise in annual revenue from $65 million to $300 million, with a long-term target of $3 billion by 2027. Minister of State for Industry, Trade and Investment, Senator John Enoh, reaffirmed this week that the ban is a cornerstone of the new 2026 Nigerian Industrialisation Policy, intended to ensure “tangible productivity” and rural transformation.
The impact of the ban has been felt acutely across the supply chain, particularly in the “shea belt” of North Central Nigeria. Initially, the restriction led to a 33% collapse in local nut prices, dropping from approximately $798 to $532 per ton, which significantly impacted the livelihoods of over five million rural women who serve as the primary pickers and harvesters. However, recent market data from January 2026 suggests a recovery, with prices rebounding to nearly 18% above pre-ban levels as local demand from industrial processors intensifies.
Industry analysts, including experts from SBM Intelligence, have noted that while the ban addresses the “supply-gap,” it also presents challenges such as potential contract defaults for international exporters and a temporary strain on rural incomes. Nevertheless, the government maintains that the policy is essential to curb the informal cross-border trade that drains 90,000 metric tonnes of raw material annually. With the current ban scheduled for review in late February 2026, the beauty and cosmetic industries are already adjusting their long-term strategies, looking toward a future where “Made in Nigeria” refined shea butter becomes the standard for global skincare formulations.
