Nigeria bans raw shea nut exports to boost local industry

Nigeria has banned the export of raw shea nuts for six months in a bid to grow its local shea butter industry and capture more value from the global market.

The country is one of the world’s biggest producers, responsible for nearly 40% of the annual crop. But despite this, Nigeria makes up just 1% of the $6.5 billion global shea market because most of its nuts are shipped out without being processed.

Vice President Kashim Shettima, announcing the ban in Abuja, called the situation “unacceptable.” He said the goal is to transform Nigeria from a supplier of raw nuts into a global hub for refined shea products used in cosmetics, food, and pharmaceuticals.

“Shea is about industrialisation, rural transformation, gender empowerment, and expanding Nigeria’s trade footprint,” Shettima said. The government hopes to increase revenues from the sector from $65 million to $300 million a year.

Shea butter, extracted from the fruit of the shea tree, is widely used in beauty products as well as in making chocolate, ice cream, and some medicines. The trees grow naturally across the “shea belt” of Africa, stretching from West to East, and are often harvested by small-scale farmers, especially women.

Agriculture Minister Abubakar Kyari said Nigeria produces about 350,000 tonnes of shea nuts each year, but nearly a quarter of it is lost to informal, unregulated cross-border trade.

Experts say the ban could bring big benefits if properly managed. Dr Ahmed Ismail of the Federal University of Minna said poor farmers often sell their harvests cheaply to middlemen who exploit the lack of regulation.

“In some villages, you see heaps of shea nuts sold for little money, while the international value is so high,” he said. “This ban is long overdue. If paired with stronger regulation, it will create jobs, boost government income, and put more money in farmers’ pockets.”