President Bola Ahmed Tinubu has formally approved a one-year extension of the ban on the export of raw shea nuts, effective from February 26, 2026, through February 25, 2027.
This strategic decision highlights the administration’s focus on industrial development and domestic value addition, aligning with the core objectives of the Renewed Hope Agenda.
By restricting the outflow of raw materials, the federal government aims to deepen Nigeria’s internal processing capacity, improve the livelihoods of producers in the Savanna belt, and transition the nation toward the export of high-value finished products.
To ensure the success of this policy, the President has authorized the Ministers of Industry, Trade and Investment, alongside the Presidential Food Security Coordination Unit, to implement a unified national framework for the shea nut value chain.
This initiative includes the withdrawal of all previous waivers that allowed for the direct export of raw nuts. Under the new directive, any excess supply must be channeled exclusively through an export framework established by the Nigerian Commodity Exchange (NCX) in strict accordance with approved guidelines.
The economic rationale for the ban is centered on the significant price disparity between raw and processed goods, as shea butter can fetch between 10 and 20 times the market price of the raw nuts. Beyond its use as an edible cooking oil, shea butter is a critical ingredient in the global cosmetic industry due to its moisturizing and anti-inflammatory properties.
To support local capacity, the Federal Ministry of Finance has been directed to provide a dedicated support window enabling a Livelihood Finance Mechanism to pilot enhanced production and processing facilities.
This policy reflects a broader commitment to inclusive growth and local manufacturing, positioning Nigeria as a more competitive participant in global agricultural value chains.
Through these measures, the government seeks to ensure that the wealth generated from the country’s natural resources is retained domestically, fostering a more resilient and self-sustaining economy.
