Nigeria Moves to End Raw Shea Nut Exports in Push for Local Processing and Higher Revenue

The Federal Government of Nigeria has reaffirmed its commitment to ending the export of raw shea nuts, signaling a major shift in strategy aimed at boosting local processing, job creation, and industrial growth.

Speaking at the Shea 2026: Beyond Borders conference in Accra, the Minister of State for Industry, John Enoh, said Nigeria can no longer afford to export raw agricultural commodities only to import finished products at higher prices.

According to him, the country’s future in the shea industry lies in industrialization, value addition, and stronger regional integration. The government is now prioritizing domestic processing as part of a broader industrial policy designed to expand Nigeria’s role in the global shea value chain.

Nigeria is one of the world’s largest producers of shea nuts, accounting for nearly 40 percent of global supply with annual production estimated between 350,000 and 500,000 tonnes. Despite this dominant position, the country currently captures only a small fraction of the global shea market, largely because most of its output has historically been exported in raw form.

Processed shea butter—widely used in cosmetics, food production, and pharmaceuticals—commands significantly higher prices than raw nuts, making local processing far more profitable. Officials believe this gap has allowed much of the value created by Nigerian farmers to benefit refiners and manufacturers overseas.

To address this imbalance, the Tinubu administration introduced a ban on raw shea nut exports in August 2025. Initially planned as a six-month measure, the policy was later extended until February 2027 by President Bola Ahmed Tinubu. Under the new rules, all shea exports must now go through the Nigeria Commodity Exchange framework, while previous exemptions for direct raw exports have been removed.

The government says the policy is part of a long-term effort to increase Nigeria’s earnings from processed shea products. Current revenue from processed shea is estimated at about $65 million, but authorities are targeting a significant increase, with ambitions to scale earnings into the billions in the coming years.

However, the transition has not been without challenges. The export restrictions triggered a sharp drop in domestic raw shea prices shortly after implementation, affecting rural farmers and collectors who depend on the commodity for income. Many of these workers are women, who make up the overwhelming majority of the shea collection and initial processing workforce.

Nigeria’s domestic processing sector also faces structural limitations, including unreliable electricity, poor infrastructure, outdated technology, and limited financing. While installed processing capacity is estimated at around 160,000 tonnes, utilization rates remain well below full capacity.

Still, officials argue that strengthening the local shea industry could deliver broader economic and social benefits, including rural job creation, climate resilience, and greater economic empowerment for women.

Nigeria is not alone in tightening control over raw shea exports. Other West African producers such as Burkina Faso, Mali, Côte d’Ivoire, Togo, and Ghana have introduced similar restrictions as the region seeks to capture more value from one of its most important indigenous commodities.

In another milestone for Nigeria, Ali Saidu of Salid Agriculture Nigeria Limited was appointed Chair of the Global Shea Alliance during the conference—the first Nigerian to lead the global body.

With these policy changes, Nigeria is signaling a clear intention to move beyond raw commodity exports and position itself as a stronger player in the global agro-processing economy.