The Federal Government has extended the ban on the export of raw shea nuts for another year as part of efforts to promote local processing and strengthen value addition in the sector.
The renewed restriction takes effect from February 26, 2026, to February 25, 2027.
President Bola Tinubu approved the extension, stating that the move is aimed at repositioning Nigeria’s shea industry away from the export of raw commodities toward the production of higher-value products such as shea butter and its derivatives. According to him, processed shea products can generate up to 20 times more revenue than raw nuts in the international market.
The President explained that the policy is designed to expand local processing capacity, improve incomes in shea-producing communities, and promote exports driven by value-added goods rather than unprocessed materials.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, said the decision aligns with the administration’s broader industrialisation plan under the Renewed Hope Agenda.
He noted that the extension demonstrates the government’s resolve to drive industrial development, deepen domestic value addition, and strengthen Nigeria’s export base through processed goods.
However, the policy has had immediate market effects. Prices of shea nuts reportedly fell by about one-third after Nigeria, in August, joined other West African producers in placing a moratorium on exports. By the end of the harvest season in December, shea nuts were trading at approximately ₦850 per kilogram, equivalent to 63 US cents, according to data from AFEX.
Shea butter production in Nigeria is largely handled by smallholder farmers and women in rural communities, particularly in central parts of the country. Many of these areas have faced increasing insecurity, with attacks by extremist groups disrupting local livelihoods and agricultural activities.
The ban has also affected supply chains. The National Shea Products Association of Nigeria disclosed that several intermediaries responsible for transporting shea nuts from rural producers to larger markets have exited the business since the restriction began, leading to the loss of contracts and reduced market access for small-scale farmers.
The government maintains that despite short-term challenges, the policy will strengthen the industry in the long run by encouraging domestic investment in processing facilities and creating more sustainable economic opportunities within shea-producing communities.
FG Extends Shea Nut Export Ban for One Year to Boost Local Processing
