Nigeria Government Bans Raw Shea Nut Exports Again to Boost Value Added Shea Butter Production Nationwide

Lagos, Nigeria – President Bola Ahmed Tinubu has officially extended the ban on the export of raw shea nuts for another year, from February 26, 2026, to February 25, 2027.

The move is part of a broader strategy to strengthen domestic processing, boost local industrial growth, and support Nigeria’s Renewed Hope Agenda.

Focus on Domestic Value Addition

The ban is designed to encourage the processing of shea nuts within Nigeria rather than exporting them in raw form.

By increasing local processing, the government hopes to create jobs, enhance livelihoods in shea-producing communities, and grow exports of value-added products like shea butter.

To achieve this, President Tinubu has tasked the Federal Ministry of Industry, Trade and Investment and the Presidential Food Security Coordination Unit with coordinating a unified national framework.

This framework will integrate industrialisation, trade, and investment strategies along the entire shea nut value chain.

New Export Guidelines

Under the updated policy, all raw shea nut exports must now follow the framework established by the Nigerian Commodity Exchange. Waivers that previously allowed direct export of raw nuts have been withdrawn, ensuring a more regulated, evidence-based approach to exports.

Excess raw shea nuts will only be sold internationally through the NCX system, in line with approved guidelines.

The Federal Ministry of Finance will also support the initiative by providing funding through a dedicated NESS Support Window to pilot a Livelihood Finance Mechanism aimed at strengthening local production and processing capacity.

Importance of Shea Nuts

Shea nuts, harvested from trees in Nigeria’s Savanna belt, are the raw material for shea butter, widely used in cosmetics and cooking. Shea butter has moisturizing, anti-inflammatory, and antioxidant properties, making it highly valuable.

Processing shea nuts locally is financially advantageous. According to government estimates, shea butter can sell for 10 to 20 times the price of raw nuts, offering a substantial incentive for communities and businesses to invest in local processing facilities.

Impact and Consequences

The extension of the export ban is expected to have significant effects across Nigeria:

• Boost to local industry: Increased processing of shea nuts will encourage investment in factories and create jobs.
• Economic benefit for producers: Communities in shea-producing regions can earn higher incomes from value-added products.
• Stronger global competitiveness: Nigeria can position itself as a key supplier of processed shea products rather than raw nuts.
• Market regulation: The NCX framework ensures exports are monitored, reducing illegal or unregulated trade.

What’s Next?

Implementation of the new framework will begin immediately, with federal ministries coordinating to ensure compliance.

Exporters must now work within the NCX system, while local producers are encouraged to take advantage of government support for processing. Monitoring and evaluation will continue to assess the policy’s impact on both production and community livelihoods.

Summary

President Bola Ahmed Tinubu has extended Nigeria’s ban on raw shea nut exports for one more year to encourage domestic processing, create jobs, and enhance the country’s role in the global shea industry.

With a regulated export system and financial support for local production, Nigeria aims to increase the value of its shea industry while supporting communities and industrial development.

Bulleted Takeaways

• President Tinubu extends the raw shea nut export ban to February 25, 2027.
• Policy aims to boost domestic processing and value-added production of shea butter.
• Federal ministries will coordinate a national framework integrating industrialisation, trade, and investment.
• All exports must follow the Nigerian Commodity Exchange guidelines; previous waivers withdrawn.
• Federal Ministry of Finance provides funding to support production and processing through a Livelihood Finance Mechanism.
• Shea butter sells for 10–20 times the price of raw nuts, incentivizing local processing.
• Policy supports jobs, community livelihoods, and Nigeria’s competitiveness in global markets.