Nigeria halts raw shea nut exports to boost local production
This policy marks a strategic shift to enhance value addition within Nigeria’s shea value chain and promote sustainable rural development.
NIGERIA – Nigeria has imposed a six-month ban on the export of raw shea nuts to boost its domestic shea butter industry and capture more value in the global market.
Despite being responsible for nearly 40% of the world’s shea nut production, Nigeria currently captures less than 1% of the USD 6.5 billion global shea market because most nuts are exported raw without local processing.
The ban aims to transform Nigeria from a raw nut exporter to a global hub for processed shea products such as refined shea butter, oil, and other derivatives used in cosmetics, food, and pharmaceuticals.
Vice President Kashim Shettima stated that the ban is a pro-value addition policy designed to secure raw materials for local processing factories, enabling them to operate at full capacity.
The Nigerian government hopes this initiative will increase annual revenues from the shea sector from USD 65 million to USD 300 million in the short term, while boosting industrialization and Nigeria’s global trade footprint.
Agriculture Minister Abubakar Kyari noted that Nigeria produces about 350,000 tonnes of shea nuts annually but loses a significant volume to informal cross-border trade.
This will help generate rural income, create jobs, and empower women, who make up 90-95% of the shea nut pickers.
The ban will help regulate the trade, protect small-scale farmers, and ensure more nuts are processed locally.
The move could improve farmers’ incomes by eliminating exploitation by middlemen who currently purchase the nuts at a low export price.
In support of the domestic processing industry’s growth, Salid Agriculture Nigeria Limited recently opened Africa’s largest shea butter processing facility in Kudu, Mokwa Local Government Area, Niger State.
The state-of-the-art facility has an annual processing capacity of 30,000 metric tonnes, positioning Niger State as a key global hub for shea production.
In addition, the Ministry of Food and Agriculture (MoFA) in Ghana has committed a substantial investment of €4 million (USD 4.7 million) to revolutionize the country’s shea industry.
This funding, in partnership with the African Development Bank (AfDB), aims to rebuild processing capacity, scale up production, and empower the rural communities that form the backbone of this sector.
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