Nigerian President Bola Ahmed Tinubu has approved a one-year extension of a ban on the export of raw shea nuts, as Africa’s largest economy seeks to promote domestic processing and increase earnings from agricultural value addition, the presidency said on Wednesday.
The renewed restriction, which runs from February 26, 2026, to February 25, 2027, forms part of government efforts to strengthen Nigeria’s agro-industrial sector and reduce dependence on raw commodity exports.
In a statement issued by presidential spokesperson Bayo Onanuga, the government said the policy aligns with the administration’s economic reform agenda aimed at positioning Nigeria as a competitive player in global agricultural value chains.
The export ban was first introduced in August 2025 as a temporary six-month measure intended to curb informal trade and encourage investment in local shea processing industries. Authorities say extending the restriction will deepen domestic manufacturing capacity while improving incomes across shea-producing communities concentrated in Nigeria’s northern savanna belt.
Nigeria accounts for nearly 40 percent of global shea production but captures only about one percent of the estimated $6.5 billion global shea market, largely because most exports leave the country in raw form.
Government officials argue that processing shea nuts locally into shea butter — widely used in cosmetics, pharmaceuticals and edible oils — significantly increases export value. Processed shea products can generate between 10 and 20 times more revenue than unprocessed nuts, according to official estimates.
Vice President Kashim Shettima previously said the policy could help Nigeria generate up to $300 million annually in the short term, with earnings expected to expand substantially by 2027 if domestic processing improves.
Under the extended directive, the government has authorised the Federal Ministry of Industry, Trade and Investment and the Presidential Food Security Coordination Unit to implement a unified national framework for the shea value chain. The framework is expected to align industrialisation, trade and investment strategies while supporting processors and exporters.
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The presidency also approved an export framework developed by the Nigerian Commodity Exchange (NCX), mandating that any approved exports of surplus shea output must pass through regulated trading channels.
Existing waivers that previously allowed direct export of raw shea nuts have been withdrawn, officials said, in an effort to tighten compliance and formalise trade within the sector.
To support implementation, the president directed the Ministry of Finance to provide access to a dedicated support window under the Nigerian Export Expansion Scheme, aimed at financing production and processing activities. Authorities say the initiative will help smallholder farmers and processors scale operations while strengthening rural livelihoods.
However, the policy has drawn criticism from some industry stakeholders and farmer groups who argue that Nigeria currently lacks sufficient processing capacity to absorb total domestic production. Critics say the restriction has reduced market access for farmers, leaving some unable to sell harvested nuts since the ban took effect.
Analysts warn that without rapid investment in processing facilities, logistics and financing, the ban could temporarily disrupt incomes within producing communities even as authorities pursue long-term industrial gains.
The government maintains that the measure is necessary to shift Nigeria away from exporting raw agricultural commodities toward higher-value manufactured goods — a strategy increasingly adopted by resource-rich African economies seeking to capture greater value from global supply chains.
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Officials say the extension underscores Abuja’s commitment to inclusive growth, local manufacturing and job creation through expanded agro-processing industries.
