The Federal Government is targeting $300 million in annual revenue following President Bola Ahmed Tinubu’s approval of a six-month ban on the export of raw shea nuts (Vitellaria paradoxa).
The measure, which took effect immediately and will be subject to review after six months, is aimed at curbing informal trade, boosting local processing, and protecting Nigeria’s shea industry.
Shea nuts are used to produce high-quality shea butter, which is in high demand globally for its use in cosmetics and confectionery due to its emollient, anti-inflammatory, and UV-protective properties.
Announcing the directive at a multi-stakeholder meeting in Abuja, Vice President Kashim Shettima said the policy is not “anti-trade” but a “pro-value addition” measure designed to ensure domestic processors have adequate raw materials.
“This decision will enable our factories to operate at full capacity, boost rural incomes, and create jobs,” Shettima said. “It will transform Nigeria from an exporter of raw 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. We project to earn $300 million annually in the short term, and by 2027, achieve a tenfold increase,” he added.
Shettima also disclosed that discussions with Brazil to open its market for Nigerian shea butter and oil would be concluded within three months.
Minister of Agriculture and Food Security, Senator Abubakar Kyari, explained that over 90,000 metric tonnes of raw shea are lost annually to informal cross-border trade, while local processors operate at only 35–50 percent of their 160,000 metric tonnes installed capacity.
He said Nigeria produces about 350,000 metric tonnes of shea nuts annually across 30 states, with the potential to reach 900,000 metric tonnes, yet captures less than one percent of the market projected to grow from $6.5 billion today to $9 billion by 2030.
“With over five million hectares of wild-growing shea trees, Nigeria holds both comparative and absolute advantage,” Kyari said. “Shea is a key non-oil export commodity under the Zero Oil Plan, and investment in its value chain will empower women and create rural jobs, as 90 percent of pickers and processors are women.”
According to Kyari, the temporary ban will secure domestic supply, enable processors to run at full capacity, curb smuggling, and position Nigeria to export high-value derivatives such as butter, olein, and stearin.
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