FG extends raw shea nut export restriction for one year
Restriction, first introduced in 2025, stays in place as authorities promote domestic value addition and tighter export controls.
Nigeria’s restriction on the export of raw shea nuts will remain in place for another year, following fresh approval by Presidency. The extension keeps the ban active from February 26, 2026, to February 25, 2027, and continues a policy that has generated debate among producers, processors and exporters across the shea belt.
The decision was conveyed in a State House statement issued by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, who framed the move as part of a broader industrial push.
“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.
At the centre of the policy is a long-running tension in Nigeria’s agricultural sector: whether restricting raw exports can genuinely build local processing capacity or whether it risks squeezing farmers and traders who depend on export markets for income.
Shea nuts, harvested largely across Nigeria’s savanna belt, are the primary raw material for shea butter, which is used globally in cosmetics, pharmaceuticals and edible oils. Processed shea butter commands significantly higher prices than raw nuts, a fact often cited by policymakers pushing for local value addition.
“The Federal Government encourages processing shea nuts into butter locally, as butter fetches between 10 and 20 times the price of the raw nuts,” the statement noted.
Under the renewed directive, the President approved the adoption of an export framework established by the Nigerian Commodity Exchange and ordered the withdrawal of all existing waivers that previously allowed direct export of raw shea nuts.
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“He also approved the adoption of an export framework established by the Nigerian Commodity Exchange and the withdrawal of all waivers allowing the direct export of raw shea nuts,” Onanuga stated.
Any surplus raw shea nuts must now be exported strictly through the exchange’s framework. “The President directed that any excess supply of raw shea nuts should be exported exclusively through the NCX framework, in accordance with the approved guidelines,” the statement added.
Beyond the trade restriction, the directive authorises the Federal Ministry of Industry, Trade and Investment and the Presidential Food Security Coordination Unit to coordinate implementation of what is described as a unified national framework for the shea value chain. The President also directed the Federal Ministry of Finance to provide access to a dedicated NESS Support Window to enable the ministry to pilot a Livelihood Finance Mechanism aimed at strengthening production and processing capacity.
The extension follows an earlier temporary ban introduced in August 2025, which was presented as a measure to curb the export of unprocessed commodities and stimulate domestic industry. At the time, the Minister of Industry, Trade and Investment, Jumoke Oduwole, had indicated that the policy would be reviewed in response to concerns raised by stakeholders about its impact on producers, exporters and foreign exchange earnings.
The latest move keeps the restriction in force while shifting greater emphasis to a structured export channel and financing support. Whether the extended ban translates into expanded processing capacity, higher incomes for rural producers or tighter supply constraints for exporters will likely depend on how effectively the new framework is implemented and monitored over the coming year.
