Nigeria has moved to boost local processing by suspending raw shea nut exports for six months, but the decision has stirred controversy across the industry.
Export Gains At Risk
On August 26, President Bola Tinubu announced the ban to encourage value addition and accelerate industrialisation.
However, the Centre for the Promotion of Private Enterprise (CPPE) warned that the abrupt measure threatens one of Nigeria’s strongest non-oil export sectors, which earned more than $3 billion in the first quarter of 2025.
Farmers And Exporters Hit
Since the ban, shea nut prices have dropped by over 30%.
As a result, farmers have lost significant income, while exporters now face contract defaults, legal disputes, and repayment risks on bank loans.
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At the same time, thousands of jobs in cultivation, aggregation, logistics, and trade now hang in the balance.
Call For Phased Approach
Although Nigeria produces about 40% of global shea supply, CPPE argued that sudden export restrictions damage investor confidence and create uncertainty.
Instead, the group urged government to phase in restrictions, allow exporters to honour current contracts, and confront structural challenges such as weak infrastructure, unreliable power, poor logistics, and limited financing.
“Value addition remains vital,” CPPE Chief Executive Officer, Muda Yusuf, said.
“Nevertheless, Nigeria must implement it strategically, protect livelihoods, and safeguard its credibility in international trade.”
