Nigeria to review shea nut export ban after industry pushback

Nigeria will review its six-month ban on raw shea nut exports after complaints from industry players over its impact on farmers, exporters and foreign exchange earnings, the government said Thursday.

The ban, introduced on August 26, 2025, was designed to boost domestic processing and promote value addition in line with efforts to diversify Africa’s largest economy away from crude oil exports.

Industry, Trade and Investment Minister Jumoke Oduwole said the ministry would submit its findings to President Bola Tinubu after consultations with stakeholders across the shea value chain.

“All inputs from stakeholders will be carefully reviewed and consolidated before a decision is made,” Oduwole said at a validation session in Abuja, adding that the government would provide the president with “factual and balanced information” to guide further action.

Officials have defended the measure as necessary to strengthen local industry and reposition Nigeria as a global supplier of refined shea products rather than raw commodities.

Speaking earlier this week, Minister of State for Industry John Enoh described the export restriction as a “difficult but necessary decision” aimed at accelerating industrialisation.

But exporters argue the ban has disrupted trade flows and affected incomes in rural communities where shea nuts are harvested.

The government said it would weigh the objectives of industrial policy against the need to protect livelihoods and non-oil export revenues before deciding whether to extend or lift the restriction.

Nigeria is one of the world’s leading producers of shea nuts, a key raw material used in cosmetics, pharmaceuticals and food processing. The commodity is largely harvested in rural communities across the country’s Middle Belt and northern regions, providing income for thousands of smallholder farmers and women-led cooperatives.

On August 26, 2025, the Federal Government of Nigeria imposed a six-month ban on the export of raw shea nuts to encourage local processing and value addition. The policy aligns with President Bola Tinubu’s broader economic diversification agenda, which seeks to expand non-oil exports and strengthen domestic manufacturing capacity.

Supporters argue the restriction could help Nigeria move up the value chain and capture greater export earnings from refined shea butter and related products. However, exporters and traders say the ban has disrupted established trade routes, reduced foreign exchange inflows, and affected livelihoods in producing communities.

The review of the policy comes as authorities attempt to balance industrialisation goals with the need to protect rural incomes and sustain Nigeria’s non-oil export growth.

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