Nigeria, the world’s largest producer of shea nuts, has announced a six-month ban on the export of raw shea nuts in a bold move to strengthen its local processing industry and maximize earnings from the lucrative global shea market.
Vice-President Kashim Shettima unveiled the decision at State House in Abuja, describing it as a key step toward industrialisation, rural development, women empowerment, and expanding Nigeria’s global trade footprint.
Currently, Nigeria produces nearly 350,000 tonnes of shea nuts annually, accounting for about 40% of global production. However, despite this dominance, the country captures just 1% of the $6.5 billion global shea industry, as most of its exports are in raw form rather than refined products.
“This ban is about moving Nigeria from being just an exporter of raw materials to becoming a global supplier of refined shea products. Our goal is to grow earnings from $65 million to $300 million annually,” Shettima stated.
Why the Ban?
The shea nut, harvested from trees that grow naturally across the “shea belt” from West to East Africa, is mainly processed into shea butter. This butter is a key ingredient in the beauty, food, and pharmaceutical industries, used in products such as cosmetics, chocolate, ice cream, and medicinal creams.
Agriculture Minister Abubakar Kyari highlighted that nearly 25% of Nigeria’s harvest is lost to unregulated cross-border trade, depriving the country of significant revenue. By restricting raw exports, the government hopes to channel more nuts into local processing facilities, creating jobs, higher income for farmers, and increased government revenue.
Farmers Have Been Exploited
Agriculture expert Dr Ahmed Ismail of the Federal University of Minna explained that small-scale farmers, especially women in central Nigeria, often sell their shea nuts at extremely low prices because they lack knowledge of their true international value.
“I visited a village where farmers sold heaps of shea nuts to traders from the cities for almost nothing. With proper regulation and local refining, farmers will finally benefit fairly from this multi-billion-dollar industry,” he said.
Dr Ismail praised the ban as a “bold step long overdue”, stressing that it must be accompanied by better regulation and investment in local refining plants.
The Bigger Picture
Nigeria’s short-term goal is to increase its annual earnings fivefold, while the long-term strategy is to position the country as a global powerhouse in refined shea butter production.
By keeping shea nuts within its borders, Nigeria aims to not only enhance its trade balance but also empower rural women, reduce poverty, and industrialize its agricultural sector.
The move could also reduce exploitation in the informal market, ensuring that smallholder farmers – who form the backbone of shea nut harvesting – gain fairer profits.
