Tinubu extends shea nut export ban by one year
President Bola Ahmed Tinubu has approved a one-year extension of the ban on the export of raw shea nuts, effective from February 26, 2026, to February 25, 2027. The decision follows an earlier six-month temporary restriction introduced in August 2025 to encourage domestic processing and strengthen the shea value chain.
In a statement signed by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the extension was described as part of the administration’s broader industrialisation drive under the Renewed Hope Agenda. The policy aims to deepen local processing capacity, enhance incomes in shea-producing communities, and reposition Nigeria’s shea exports toward higher-value finished products.
To operationalise the directive, the President mandated the Federal Ministry of Industry, Trade and Investment and the Presidential Food Security Coordination Unit to coordinate a unified, evidence-based national framework aligning industrialisation, trade, and investment priorities across the shea value chain.
The President also approved the adoption of an export framework developed by the Nigerian Commodity Exchange and ordered the withdrawal of all waivers previously granted for the direct export of raw shea nuts. Any excess raw nut supply must now be exported strictly through the Nigerian Commodity Exchange in line with approved guidelines.
Additionally, the Federal Ministry of Finance has been directed to provide access to a dedicated NESS Support Window to enable the Ministry of Industry, Trade and Investment to pilot a Livelihood Finance Mechanism aimed at strengthening production and processing capacity.
Shea nuts, widely cultivated in Nigeria’s savanna belt, are processed into shea butter, a key input in cosmetics, pharmaceuticals, and edible oil markets. According to government data, processed shea butter commands between 10 and 20 times the value of raw nuts, reinforcing the administration’s focus on domestic value addition.
Source: BUSNIESS DAY
EXPERT REVIEW FOR AGRI-FOOD STAKEHOLDERS
The extension of the raw shea nut export ban signals a firm policy shift toward value chain industrialization and export discipline. However, implementation will determine whether the policy delivers structural gains.
- The policy reinforces Nigeria’s value-addition industrialization strategy.
By restricting raw exports and promoting butter processing, government is attempting to retain higher margins within the domestic economy, create rural processing jobs, and strengthen non-oil export earnings. - Market coordination through the Nigerian Commodity Exchange introduces structured trade governance.
Routing excess exports through the NCX framework can improve transparency, price discovery, and quality control. However, operational efficiency and stakeholder buy-in will be critical to prevent informal trade leakages. - Processing capacity expansion must match raw material supply.
If domestic processors lack sufficient capacity, financing, power reliability, and quality certification systems, supply bottlenecks could depress farmgate prices and hurt smallholder collectors, particularly women who dominate shea gathering. - Dedicated financing mechanisms are central to success.
The proposed Livelihood Finance Mechanism under the NESS Support Window could provide working capital for processors, aggregation hubs, and equipment upgrades. Without accessible and affordable financing, the policy risks becoming restrictive rather than transformative. - Export competitiveness will depend on standards and market access.
While shea butter commands significantly higher prices than raw nuts, international markets demand traceability, quality consistency, and certification compliance. Strengthening these systems will determine whether Nigeria captures premium cosmetic and edible oil markets.
Conclusion
The extension of the raw shea nut export ban positions Nigeria to capture greater value within the global shea market. For farmers, processors, investors, and policymakers, the priority now is coordinated implementation that expands processing capacity, protects rural incomes, and strengthens Nigeria’s competitiveness in high-value agricultural exports.
