In a bold step toward transforming its economy and strengthening local industries, the Nigerian government has announced a six-month ban on the export of raw shea nuts. The policy, unveiled by President Bola Tinubu and Vice President Kashim Shettima, aims to shift the nation from being primarily a supplier of raw materials to becoming a global powerhouse in refined shea butter and related skincare products. This move is expected to generate an estimated $300 million in the short term, with the potential to grow to a staggering $3 billion annually by 2027 if properly implemented.
Nigeria is currently the largest global supplier of raw shea nuts, accounting for about 40% of worldwide production, but shockingly, the country captures just around 1% of the $6.5 billion global shea products market. Industry experts have long argued that this imbalance keeps the country from maximizing its economic potential. The new policy is designed to close that gap by encouraging domestic processing, boosting industrial capacity, and creating thousands of jobs across the country.
Vice President Shettima explained that the decision is not aimed at shutting out international trade but at adding value within Nigeria’s borders. By ensuring that locally harvested shea nuts are processed domestically before export, the government hopes to stimulate the growth of factories and processing plants, particularly in rural communities where shea picking and initial processing are primary sources of income. Over 90% of Nigeria’s shea pickers and small-scale processors are women, meaning this policy has a strong empowerment component, offering opportunities for better pay and improved working conditions.
Experts, however, caution that the success of the initiative will depend heavily on proper implementation. Infrastructure gaps, limited access to financing for small and medium enterprises, and inconsistent power supply remain significant hurdles. Industry analysts, such as those from SBM Intelligence, have warned that without substantial investment and government support, local processors might struggle to absorb the volume of raw nuts that will no longer be exported.
The move aligns Nigeria with other West African countries like Ghana, Burkina Faso, and Togo, which have already taken steps to prioritize local processing to capture more value from the shea industry. Still, stakeholders are calling for phased implementation and supportive measures such as government buy-backs of surplus stock, training programs for rural workers, and incentives for investors to set up modern processing facilities.
There is also a push to expand Nigeria’s access to international markets. Vice President Shettima revealed ongoing negotiations with Brazil to open its market to Nigerian refined shea products within the next three months. This could create significant demand and ensure that local processors have profitable outlets for their products.
This policy also ties into Nigeria’s “Zero Oil” strategy, a national plan to diversify exports beyond crude petroleum and build a more resilient economy. By investing in industries like shea processing, the government hopes to create sustainable value chains, increase foreign exchange earnings, and reduce the economy’s dependence on oil revenue.
While the six-month ban represents a short-term disruption for exporters of raw nuts, many industry observers believe that, with the right support and strategic partnerships, the policy could catalyze a new era of industrialization and inclusive growth. For rural women who have long been the backbone of the shea industry but reaped little profit, this could be the long-awaited turning point for economic empowerment and community transformation.
In the coming months, the true test will be how effectively the government, private investors, and local stakeholders collaborate to address existing gaps in processing capacity and infrastructure. If successful, Nigeria could soon transform from a raw shea supplier into a leading global hub for high-quality refined shea butter and skincare products, strengthening its economy and changing lives in the process.