Nigeria extends raw shea nut export ban to fuel domestic processing revolution
The extension promotes inclusive growth by securing raw materials locally and boosting household incomes in producing communities.
NIGERIA – Nigeria has extended its ban on raw shea nut exports to February 25, 2027, aiming to boost local processing and achieve up to 20 times higher value from shea butter over raw nuts.
This policy builds on an initial six-month ban from August 2025, targeting Nigeria’s dominant role in global shea production.
President Bola Tinubu approved the one-year extension on February 25, 2026, just before the original ban expired.
The measure prohibits direct raw shea nut exports, requiring all excess supply to route through the Nigerian Commodity Exchange (NCX) framework, while withdrawing prior waivers.
Supporting actions include a national framework led by the Ministries of Industry, Trade and Investment and the Presidential Food Security Coordination Unit, as well as a dedicated finance window for production and processing.
Nigeria produces 350,000–500,000 tons of shea nuts annually, nearly 40% of global supply, yet captures only 1% of the USD 6.5 billion market due to raw exports.
Processed shea butter, used in cosmetics, food, and pharmaceuticals, sells for 10–20 times the price of raw nuts, driving the push for 20x value growth through domestic refining.
The policy seeks short-term USD 300 million revenue and up to USD 3 billion by 2027, aligning with economic diversification under the Renewed Hope Agenda.
The ban addresses local processors operating at 35–50% capacity despite the potential for 160,000 tons, curbing informal cross-border trade that loses 90,000 tons yearly.
It positions Nigeria as a refined shea butter exporter, with new market access secured in Brazil within months of the initial ban.
Globally, the shea market is projected to hit $9 billion by 2030, offering Nigeria an expanded share in high-value segments.
Shea production involves 90–95% women pickers and processors across 30 states in Nigeria’s savanna belt, enhancing rural livelihoods, gender empowerment, and job creation.
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