President Bola Tinubu has approved a one-year extension of the ban on the export of raw shea nuts, a move aimed at strengthening domestic processing and increasing Nigeria’s value-added exports.
The renewed directive, which runs from February 26, 2026, to February 25, 2027, was disclosed in an official statement on Wednesday by the President’s spokesperson, Bayo Onanuga.
The extension demonstrates the Federal Government’s commitment to transforming Nigeria’s shea industry into a globally competitive sector while promoting job creation, improving incomes for rural communities, and stimulating local manufacturing. By focusing on value addition, the policy seeks to ensure that Nigeria maximizes revenue from its agricultural commodities instead of exporting raw products that command lower prices internationally.
“The decision underscores the administration’s commitment to advancing industrial development, strengthening domestic value addition, and supporting the objectives of the Renewed Hope Agenda,” the statement read. “The ban aims to deepen processing capacity within Nigeria, enhance livelihoods in shea-producing communities, and promote the growth of Nigerian exports anchored on value-added products.”
Background
The policy was initially introduced in August 2025 as a six-month temporary ban. The initial ban sought to curb informal trade, encourage local processing, and protect investments made by domestic shea processors. Unprocessed shea nuts, often exported in bulk, yield minimal foreign exchange and limit the economic benefits to local communities.
The initial policy sparked mixed reactions across Nigeria’s non-oil export sector. While local processors welcomed the directive as an opportunity to strengthen domestic production, some exporters expressed concerns about potential supply chain disruptions and the short-term impact on foreign exchange earnings. Following consultations with stakeholders, the government announced the extension, reflecting efforts to balance industry growth with economic stability.
Implementation and Regulatory Framework
To ensure effective enforcement of the ban, President Tinubu has tasked the Federal Ministry of Industry, Trade, and Investment, in collaboration with the Presidential Food Security Coordination Unit, to implement a unified national framework for the shea value chain.
The Nigerian Commodity Exchange (NCX) has developed an export regulatory framework to standardize and streamline shea exports. All previously granted waivers allowing direct export of raw shea nuts have been revoked. Henceforth, any surplus production must pass through the NCX framework to ensure transparency, traceability, and fair market pricing.
Additionally, the Federal Ministry of Finance has been directed to facilitate access to a dedicated NESS Support Window to assist operators in the sector. This initiative will support the Ministry of Industry, Trade, and Investment in piloting a Livelihood Finance Mechanism aimed at improving production efficiency, processing capacity, and global competitiveness within the shea industry.
Economic Significance
Shea nuts are predominantly harvested from trees across Nigeria’s savanna belt and are rich in oil content, making them vital raw materials for cosmetics, pharmaceuticals, confectionery, and edible oils. When processed into shea butter, these products command significantly higher prices on the international market than raw nuts.
By promoting local processing, the government expects to generate higher export earnings, create employment opportunities across producing communities, and stimulate industrial growth. The policy also aligns with broader efforts to transition Nigeria from a raw commodity-exporting economy to one that emphasizes industrialization and value-added products.
Stakeholder Impact
Local processors stand to benefit significantly from the extended ban. By consolidating supply for domestic processing, the government aims to ensure that shea butter producers have consistent access to raw materials. Increased processing capacity is expected to strengthen Nigeria’s position in the global shea butter market while supporting sustainable livelihoods in rural areas.
However, some exporters remain cautious about potential disruptions to supply chains and international trade relationships. The government’s approach, which emphasizes consultation and structured regulation, seeks to mitigate these concerns while maximizing long-term gains for the sector.
What You Should Know
- The export ban now runs from February 26, 2026, to February 25, 2027.
- The policy focuses on domestic processing to increase value addition and revenue.
- All raw shea nuts must be channeled through the Nigerian Commodity Exchange.
- The extension supports job creation and industrial development in shea-producing regions.
- Federal agencies are coordinating a unified framework to ensure transparency and competitiveness.
The extension of the raw shea nuts export ban reflects the government’s commitment to industrial growth, value addition, and economic diversification. By prioritizing domestic processing, Nigeria aims to strengthen its agricultural export sector, improve rural livelihoods, and expand its footprint in the global shea butter market.
