Business stakeholders are expressing blended reactions to President Bola Tinubu’s current resolution to droop the export of uncooked shea nuts for six months.
The federal government says is geared toward stimulating native processing and boosting worth addition in Nigeria’s agro-economy.
Shea, broadly known as “ladies’s gold,” is a key supply of livelihood for hundreds of rural ladies, particularly in northern Nigeria, the place assortment and preliminary processing are sometimes carried out.
Issues over coverage implementation, home refining capability
Former Nationwide President of the Nigerian Affiliation of Chambers of Commerce, Business, Mines and Agriculture (NACCIMA) and Chairman of the Alliance for Financial Analysis and Ethics Ltd/Gte, Hon. Dele Kelvin Oye, has urged the Federal Authorities to supply readability on its current coverage on shea nut industrialisation.
In a message to Nairametrics, Oye counseled the administration’s dedication to worth addition however cautioned in opposition to hasty coverage reversals with out enough transition and broad session.
“Whereas we recognise and commend the administration’s dedication to worth addition, we warning that fast coverage reversals with out enough transition and sector-wide session danger undermining ongoing commitments, funding plans, and the livelihoods of many members of our Alliance commerce networks,” he mentioned.
He additional careworn the significance of correct implementation, warning that even well-intentioned insurance policies might fail if poorly executed.
“We have to draw consideration to the potential dangers of poor implementation of an excellent coverage. We hereby search clarification and route from Mr President to make sure that his good insurance policies will not be poorly executed,” he added.
One shea nut exporter who additionally spoke to Nairametrics on situation of anonymity mentioned
“Some shea nut exporters have about $4million subsisting contracts earlier than this coverage was introduced. We’re speaking about loans and different services that must be serviced. Many might run into critical money owed as no session was made earlier than the announcement.”
An trade professional who spoke to Nairametrics on the situation of anonymity on the problem mentioned, “We have to set up native capability to refine. We must be cautious in any other case; we shall be penalising the exporters unnecessarily.
There are various different merchandise. This will result in folks smuggling out the product throughout the porous borders. How do you implement this?”
Agricultural extension professional on the College of Abuja, Grace Ajayi, talking to Nairametrics mentioned whereas the coverage has potential, the truth on the bottom presents critical challenges.
- “Processing industries are nonetheless underdeveloped, and plenty of operators battle with excessive power prices, restricted entry to credit score, and poor infrastructure. If the suspension is enforced with out addressing these points, farmers and collectors might endure losses as a result of processors received’t be capable to purchase all the provision,” she warned.
Regional shea nut export bans put strain on Nigeria
A coverage doc obtained by Nairametrics additional explains the rationale behind the presidential resolution.
In keeping with the doc, the ban turns into needed as a result of Nigeria has change into more and more weak resulting from regional commerce dynamics.
Whereas Burkina Faso, Mali, Ghana, and Togo have already banned the export of uncooked shea nuts to strengthen their home processing industries, Nigeria stays the one nation within the sub-region nonetheless permitting such exports.
- “These bans have elevated demand for Nigeria’s uncooked shea nuts, driving up casual exports and additional lowering the supply of uncooked supplies for Nigerian processors—undermining home worth addition
- “Nigeria is now the one nation within the area nonetheless allowing uncooked shea exports, making it a hotspot for opportunistic shopping for. Worldwide consumers—together with merchants from neighboring international locations—are flooding Nigeria to use this coverage hole.
- This influx has deepened shortage and undermines native processors, who now compete with exporters for uncooked provide.”
The doc said additional “There is a chance to spice up the shea worth chain to generate round $300million yearly within the quick time period if the really useful ban is enforced appropriately and effectively.”
Motion will additional enhance non-oil exports
Some consultants have famous that the coverage might considerably strengthen Nigeria’s non-oil export sector in the long term.
A commerce analyst, Dr. Ibrahim Musa mentioned the suspension is designed to reposition Nigeria within the international shea worth chain, the place the nation has lengthy been deprived.
- “Nigeria is the biggest producer of shea on the earth, however the advantages to our economic system have been minimal as a result of we largely export uncooked nuts. By processing regionally into shea butter, cosmetics, and different high-value merchandise, we are able to enhance overseas change earnings, scale back dependency on crude oil, and create sustainable jobs,” he defined.
- He additional famous that international locations reminiscent of Ghana and Burkina Faso have proven how worth addition within the shea trade can translate into billions of {dollars} in income and vital employment alternatives.
Key milestones in coverage implementation
The doc seen by Nairametrics exhibits that the implementation of the uncooked shea nut export ban will observe a phased strategy starting within the third quarter of 2025.
- To help this, aggregation infrastructure shall be established and operationalized between the third and fourth quarters of 2025 in main producing states reminiscent of Niger, Kwara, and Kebbi.
- Customs officers may also endure coaching, with assets deployed to key border zones and surveillance protocols launched to strengthen enforcement in opposition to smuggling.
- Within the fourth quarter of 2025, an preliminary efficiency assessment shall be performed to evaluate the coverage’s impression on processor utilization, commerce formalization, and provide availability.
This shall be adopted by a mid-term coverage analysis within the second quarter of 2026, specializing in export constructions, rural earnings features, and total sector outcomes, which is able to assist information subsequent coverage changes, the doc revealed.
Backstory
President Tinubu, on Tuesday accredited a 6-month ban on the export of uncooked shea nut to curb casual commerce, enhance native processing, defend and develop Nigeria’s shea trade.
The ban, which is with fast impact, is topic to assessment on expiration and particularly geared toward boosting Nigeria’s shea worth chain to generate round $300 million yearly within the quick time period.
President Tinubu mentioned, “Nigeria’s shea is our inexperienced wealth. We produce practically 40% of the world’s provide, but seize lower than 1% of its $6.5bn international market. That imbalance ends now. I’ve accredited a six-month suspension of uncooked shea exports, on the advice of the Presidential Meals Methods Coordinating Unit, to safe provide for native processors, create jobs, and defend a price chain the place 95% of pickers are ladies.
“With new market entry opening in Brazil and past, we are going to now not export poverty and import worth. We are going to create worth at dwelling, compete overseas, and ship prosperity below the Renewed Hope Agenda,” Tinubu mentioned.
What it is best to know
The ban additionally targets a tenfold enhance in export income by 2027, with 99% of the worth projected to return from refined shea merchandise.
Nigeria’s non-oil exports rose to $3.225 billion within the first half of 2025, marking a 19.59% enhance in comparison with $2.696 billion recorded in the identical interval of 2024, in accordance with the Nigerian Export Promotion Council (NEPC).
The announcement was made by NEPC Director-Common, Nonye Ayeni, throughout the presentation of the H1 2025 Non-Oil Export Efficiency Report in Abuja.
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