The Federal Government’s temporary restriction on the export of raw shea nuts has significantly reduced earnings for rural women engaged in the shea value chain, with many still unable to dispose of their produce months after the policy took effect,
According to Daily Independent, the Federal Government first imposed a six-month ban on August 26, 2025.
Recall that President Bola Tinubu approved a further one-year extension of the measure, spanning February 26, 2026, to February 25, 2027.
Bayo Onanuga, Special Adviser to the President on Information and Strategy, explained that the extension aligns with the administration’s industrialisation drive under the Renewed Hope Agenda.
Authorities introduced the ban to stimulate domestic processing, promote value addition and curb the export of unprocessed raw materials, with the broader aim of repositioning Nigeria as a global centre for refined shea products rather than a supplier of raw commodities.
However, industry stakeholders argue that the policy, though designed to strengthen local processing, has instead disrupted livelihoods and exposed deep-rooted structural deficiencies in the shea sector.
Yinka Adesola, a key stakeholder in the industry, said rural women who depend on shea nut trading have experienced a sharp drop in income since the restriction began.
She noted that sales have fallen considerably, leaving many women stranded with unsold inventory and limited market access.
“There was massive decrease in sales, earning and income of rural women. Many still have unsold shea nuts,” she said.
Adesola added that hopes of increased domestic processing have not materialised, as processing activities remain minimal months after the ban’s introduction.
She attributed the slow pace of local processing to infrastructural challenges in rural communities, especially erratic electricity supply required to power processing equipment.
“Government should provide enabling environment. Processing machines need electricity. Rural areas don’t have electricity hence no processing,” she said.
Olukayode Oyeleye, an Agribusiness Strategist, observed that the shea sector lacks a clearly defined value chain structure, limiting the effectiveness of export restrictions as a policy tool.
He explained that shea trees grow naturally in the wild rather than on organised plantations, making it difficult to accurately measure production levels since fruits are typically gathered after they fall in forested areas.
According to Oyeleye, quality control is another persistent issue, as inferior nuts are sometimes mixed with higher-grade produce during processing.
He further noted that the industry operates with minimal regulation and oversight, with many participants outside formal government records.
Oyeleye maintained that reviewing or even lifting the export ban would have limited impact unless fundamental challenges within the industry are first addressed.
He recommended conducting a comprehensive census of shea trees and value chain actors to generate reliable data for planning and policy formulation.
The government, he added, should identify high-production zones and establish operational best practices to enhance product quality for domestic and international markets.
He also proposed guaranteed minimum pricing as a form of intervention to incentivise stakeholders.
For Oyewole Okewole, Senior Associate Consultant at FutuX Agri-consult Limited, the export ban has produced varied effects across the value chain, benefiting processors with greater access to raw materials while creating setbacks for farmers and exporters.
He explained that although processors now have improved access to shea nuts, many lack the capacity to absorb the increased supply.
Okewole noted that export constraints have reduced foreign exchange inflows and weakened established global market linkages.
He added that the glut in supply, coupled with restricted access to international buyers, has pushed prices downward, creating uncertainty among stakeholders.
Despite these challenges, Okewole said the policy could still foster long-term growth if properly implemented.
He suggested retaining the ban in a modified form, backed by a comprehensive development framework and transition plan that prioritises value addition.
According to him, Nigeria must shift from exporting raw shea nuts to marketing processed products such as shea butter in order to compete effectively on the global stage.
However, he cautioned that without adequate supporting measures, the extended ban could further strain the sector.
“Otherwise, if they maintain the ban and all these are not put in place we will go back to the first stance we were,” he said.
Okewole advised expanding processing capacity through private sector incentives, including tax relief and reduced import duties on processing equipment.
He also proposed adopting staggered export arrangements instead of a total ban and urged efforts to strengthen global markets for shea butter.
Additionally, he recommended establishing a structured marketing board to coordinate value chain activities and promote Nigerian shea products internationally.
Meanwhile, stakeholders have faulted President Tinubu’s decision to prolong the export ban for another year, warning that without urgent reforms and infrastructure support, the policy may continue to hurt those it was meant to empower.
