President Bola Tinubu has approved a one-year extension of the ban on raw shea nut exports, effective now through February 25, 2027.
The move supports the Renewed Hope Agenda by promoting the local processing of raw commodities, creating jobs, and increasing incomes for communities.
The announcement was made via an official statement released late Wednesday by Presidential Spokesman Bayo Onanuga, just hours before the extension took effect. “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 read.
It emphasized the ban’s role in deepening processing capacity within Nigeria, fostering livelihoods in shea-producing regions, and promoting exports rooted in refined goods rather than unprocessed resources.
Shea nuts, harvested from the shea tree (Vitellaria paradoxa) prevalent across West Africa’s savanna belt, are a cornerstone of Nigeria’s non-oil exports. Nigeria ranks among the world’s top producers, alongside countries like Ghana and Burkina Faso, with annual output estimated at over 500,000 metric tons. The nuts are primarily used to produce shea butter—a versatile fat employed in cosmetics, confectionery (as a cocoa butter substitute), and pharmaceuticals.
However, much of Nigeria’s harvest has historically been shipped raw to international markets, yielding minimal domestic benefits and exposing the sector to price volatility.
This extension builds on an initial six-month temporary ban imposed in August 2025, which sought to clamp down on informal trade, encourage local processing, and ensure the industry’s long-term sustainability. That policy addressed longstanding issues, including the rampant export of unprocessed nuts that bypassed value addition, undermining investments by Nigerian processors. “The initial ban was introduced to curb informal trade, stimulate local processing, and safeguard the long-term sustainability of Nigeria’s shea industry,” the presidency noted, highlighting concerns over lost opportunities for economic diversification.
The policy has not been without controversy. When first enacted, it elicited mixed reactions from stakeholders in the non-oil export arena. Exporters and traders voiced worries about potential dips in foreign exchange earnings and disruptions to established supply chains, fearing that unsold raw nuts could lead to market gluts and depressed prices for farmers.
Last week, government officials assured industry players that the ban would undergo review following broad consultations on its economic ripple effects—a promise that appears to have paved the way for this calibrated extension.
Proponents, however, argue that the ban aligns with global best practices in commodity management, drawing parallels to policies in the cocoa and palm oil sector where value addition has driven growth. By channeling surplus production through regulated channels, the government aims to capture more revenue from processed shea products, which fetch premium prices on international markets. For instance, refined shea butter can command up to three times the value of raw nuts, potentially injecting billions of naira into the economy annually.
To bolster enforcement and maximize impact, President Tinubu has mandated a collaborative framework. The Federal Ministry of Industry, Trade, and Investment, working alongside the Presidential Food Security Coordination Unit, will spearhead a unified national strategy for the shea value chain.
This includes adopting an export regulatory framework crafted by the Nigerian Commodity Exchange (NCX) to standardize operations and ensure transparency, traceability, and fair pricing. All prior waivers permitting direct raw exports have been revoked immediately, with any excess nuts required to flow exclusively through the NCX system.
Further support comes from the financial sector: The Federal Ministry of Finance has been instructed to open a dedicated Nigerian Export Supervision Scheme (NESS) Support Window for shea operators. This mechanism will pilot a Livelihood Finance initiative, designed to enhance production capabilities, streamline processing, and elevate global competitiveness. “The intervention will enable the Ministry of Industry, Trade, and Investment to pilot a Livelihood Finance Mechanism aimed at improving production capacity, processing efficiency, and global competitiveness within the shea industry,” the statement elaborated.
This directive arrives at a pivotal moment for Nigeria’s economy, as the nation grapples with fluctuating oil revenues and seeks to leverage agriculture for inclusive growth. Shea-producing communities, concentrated in states like Niger, Kwara, Oyo, and Benue, stand to benefit most. Women, who traditionally dominate shea collection and initial processing, could see improved incomes through formalized markets and training programs. Yet, challenges remain: ensuring smallholder farmers aren’t squeezed by the ban requires robust monitoring to prevent smuggling or price crashes.
As Nigeria pivots from raw commodity dependence toward an industrial powerhouse, this policy extension signals a broader ambition. “The directive forms part of broader efforts to shift Nigeria away from the export of raw commodities toward a more industrial and export-driven economy,” the presidency affirmed. With implementation now in motion, all eyes will be on how this ban translates into tangible gains for farmers, processors, and the national treasury.
WHAT YOU SHOULD KNOW
President Bola Tinubu has extended the ban on exporting raw shea nuts for another full year (February 26, 2026–February 25, 2027), signaling Nigeria’s firm commitment to stop shipping out unprocessed commodities and instead build a stronger domestic shea processing industry.
This policy is designed to keep more economic value inside Nigeria—creating jobs, raising incomes in rural shea communities (especially for women), and increasing export earnings through higher-value processed shea products rather than raw nuts.
