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Tinubu bans raw shea exports for six months to boost jobs, $300m market

Temporary ban seeks to end raw exports, create jobs, and position Nigeria as a global leader in shea butter production.

For decades, Nigeria has been the world’s largest producer of shea nuts. Contributing nearly 40 percent of global supply, yet the country captures less than one percent of the multi-billion-dollar global shea market.

While neighbours like Ghana and Burkina Faso have turned shea into an export goldmine, Nigeria’s industry has remained trapped in raw exports, informal cross-border trade, and underutilised processing plants.

That may be about to change. On Monday, President Bola Tinubu approved an immediate six-month temporary ban on the export of raw shea nuts. The policy, subject to review after expiration, is aimed at redirecting raw supply into local processing, creating jobs, and transforming Nigeria into a global hub for shea butter, oil, and derivatives.

Vice President Kashim Shettima, who announced the directive at a multi-stakeholder meeting in Abuja, described the decision as a “pro-value addition policy”. Designed to secure raw materials for domestic factories. “This is about industrialisation, rural transformation, gender empowerment, and expanding Nigeria’s global trade footprint,” Shettima said.

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He noted that while Nigeria produces nearly 40 percent of global shea, it only controls one percent of the $6.5 billion market. “This is unacceptable. Our short-term target is $300 million annually, with a ten-fold increase by 2027,” he added.

Minister of Agriculture and Food Security, Abubakar Kyari, explained that Nigeria currently produces about 350,000 metric tonnes of shea annually across 30 states, with the potential to reach 900,000. But processors, with an installed capacity of 160,000 tonnes, operate at only 35–50 percent because raw nuts are siphoned away through informal trade, estimated at 90,000 tonnes annually.

He warned that without corrective action, “Nigeria risked becoming a raw depot for opportunistic buyers, undermining processors, disempowering rural women, and forfeiting billions in potential export revenues.”

The six-month ban is expected to secure domestic supply and raise local processing to full capacity. Officials project that the shea sector could generate $300 million in the short term, and capture a significant share of the global market projected to hit $9 billion by 2030.

Tinubu’s government is also leveraging trade diplomacy: Nigeria and Brazil have agreed to prioritise access for Nigerian shea butter and oil within three months.

Beyond trade, the move has strong social dimensions. About 90 percent of shea pickers and processors in Nigeria are women, meaning greater investment in the value chain directly impacts female livelihoods, rural income, and gender empowerment. “By protecting the shea industry, we are protecting livelihoods, dignity, and opportunity for millions of our women,” Shettima stressed.

The government insists the policy is temporary, not a trade restriction, but a bridge toward higher value. Whether Nigeria can seize this moment to industrialise its shea sector and rival regional players will depend on how well it enforces the ban, supports local processors, and attracts investment into a value chain that has remained neglected for far too long.

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