By Obinna Uballa
Experts have stressed the need for stricter border enforcement to ensure the success of the Federal Government’s six-month ban on raw shea nut exports, a policy aimed at curbing informal trade and generating $300 million in revenue.
“The ban is a welcome development. The price of shea butter has skyrocketed in recent months because many shea nut producers prefer exporting,” said Favour Onyiogwu, an organic soap maker based in Anambra State. “What we used to buy for N8,000 now costs about N30,000. For the ban to work, there must be strict enforcement and effective border control to prevent smuggling.”
Recall that President Bola Tinubu had on Tuesday, approved a six-month ban on the export of raw shea nut (Vitellaria paradoxa) to curb informal trade, boost local processing, protect and grow Nigeria’s shea industry, with a revenue target of $300m revenue, annually.
The nuts, it was gathered, are used to produce high-quality shea butter, sought after globally for its use in cosmetics and confectionery due to its emollient, anti-inflammatory, and UV-protective properties.
Tinubu said the measure, which takes immediate effect and will be subject to review after six months, is aimed at boosting local production and creating jobs. The policy is projected to generate about $300 million annually in the short term.
Vice President Kashim Shettima, who announced the directive during a multi-stakeholder meeting at the State House, Abuja, said the ban was not an “anti-trade policy” but a “pro-value addition policy” to ensure raw materials are available for domestic processing industries.
“This decision will secure raw materials for our processing factories, enable industries to run at full capacity, and boost rural income and jobs for our people,” Shettima said. “It will transform Nigeria from an exporter of raw shea nuts to a global supplier of refined shea butter, oil, and other derivatives.”
He noted that Nigeria accounts for nearly 40 percent of global shea production but captures only one percent of the $6.5 billion global market. “This is unacceptable,” he said. “We project to earn about $300 million annually in the short term, and by 2027, we aim for a tenfold increase.”
The vice president further stressed that the policy was about industrialisation, rural transformation, gender empowerment, and expanding Nigeria’s global trade footprint. He added that discussions with Brazil to open its market to Nigerian shea butter and oil will be concluded within three months.
Minister of Agriculture and Food Security, Senator Abubakar Kyari, said the move became necessary after a rapid assessment of the shea value chain revealed that over 90,000 metric tonnes of raw shea are lost annually to informal cross-border trade, while Nigerian processors operate at only 35–50 percent of their installed capacity of 160,000 metric tonnes.
Kyari explained that while neighbouring countries such as Ghana, Burkina Faso, Mali, and Togo had already restricted raw shea exports to protect local industries, Nigeria remained vulnerable as a hotspot for unregulated buying.
He noted that Nigeria produces an estimated 350,000 metric tonnes of shea annually across 30 states, with the potential to reach nearly 900,000 metric tonnes. Yet, the country captures less than one percent of the global shea market, projected to grow from $6.5 billion today to $9 billion by 2030.
“Shea is one of the few commodities where Nigeria holds both comparative and absolute advantage,” Kyari said. “With over five million hectares of wild-growing shea trees, we can dominate in both production and value-added processing.”
He emphasised that 90 percent of shea pickers and processors are women, making the industry central to women’s empowerment and rural job creation.
“The reasons for this directive are clear,” Kyari said. “Without action, Nigeria risked becoming a raw depot for illicit buyers, undermining local processors and forfeiting billions in export revenue. The temporary ban will secure domestic supply, enable processors to operate at full capacity, curb informal trade, and lay the foundation for Nigeria to export high-value derivatives such as butter, olein, and stearin.”
