Stakeholders hail shea export ban, eye $6.5bn global market

Stakeholders hail shea export ban, eye $6.5bn global market

Nigeria’s recent six-month ban on the export of raw shea nuts has been welcomed by industry stakeholders as a strategic move to increase the country’s share of the $6.5 billion global shea market. Despite producing around 350,000 metric tonnes annually—about 40% of the world’s supply—Nigeria currently captures less than 1% of the market’s value, largely due to exporting raw shea and importing finished products at higher prices.

The policy, announced by the Office of the Vice President, aims to curb the annual loss of over 90,000 metric tonnes to informal cross-border trade and redirect supply to domestic processors, thereby stimulating investment in processing capacity, creating jobs, and boosting export earnings. Experts note that industrializing Nigeria’s shea sector could make it a billion-dollar industry, given the rising global demand for shea in cosmetics and as a cocoa substitute in chocolate and confectionery.

Agriculture Minister Abubakar Kyari highlighted that the ban aligns Nigeria with other West African shea producers—Ghana, Burkina Faso, Mali, and Togo—who have restricted raw exports to strengthen domestic processing and increase regional leverage in global markets. Analysts argue that coordinated restrictions across West Africa could shift bargaining power toward producers rather than raw commodity suppliers.

Challenges remain, including the risk of smuggling and the need for investments in processing infrastructure and financing. However, short-term prospects are encouraging, with Nigerian shea butter and oil expected to gain prioritized access to the Brazilian market within three months, potentially boosting value-added exports. Overall, stakeholders view the ban as a key step toward transforming Nigeria’s agricultural sector from raw commodity dependence to industrialized value addition.