President Tinubu Extends Raw Shea Nut Export Ban Until 2027
President Bola Ahmed Tinubu has taken decisive action to bolster Nigeria's agricultural sector by extending the ban on raw shea nut exports for an additional year. The prohibition, which was set to expire, will now remain in effect until February 25, 2027, as announced by presidential spokesperson Bayo Onanuga on Wednesday night, February 25.
New Framework Aims to Enhance Local Processing and Value Addition
The extension is part of a broader strategy to promote inclusive growth and position Nigeria as a competitive player in global agricultural value chains. According to the presidency's statement, this decision underscores the administration's commitment to advancing industrial development and strengthening domestic value addition in line with the Renewed Hope Agenda.
The ban specifically aims to:
- Deepen processing capacity within Nigeria
- Enhance livelihoods in shea-producing communities
- Promote the growth of Nigerian exports based on value-added products
Coordinated Implementation Through New National Framework
President Tinubu has authorized the ministers of the Ministry of Industry, Trade and Investment and the Presidential Food Security Coordination Unit (PFSCU) to coordinate the implementation of a unified, evidence-based national framework. This framework will align industrialisation, trade, and investment priorities across the shea nut value chain.
Onanuga emphasized that processing shea nuts into butter locally is significantly more profitable, as "butter fetches between 10 and 20 times the price of the raw nuts." This approach is designed to increase profitability for farmers and communities involved in shea production.
Adoption of Nigerian Commodity Exchange Export Framework
In a related development, the president has approved the adoption of an export framework established by the Nigerian Commodity Exchange (NCX) and ordered the withdrawal of all waivers that previously allowed direct export of raw shea nuts. Under the new directive, any excess supply of raw shea nuts must be exported exclusively through the NCX framework in accordance with approved guidelines.
Additionally, President Tinubu has directed the Ministry of Finance to provide access to a dedicated NESS Support Window. This will enable the Ministry of Industry, Trade and Investment to pilot a Livelihood Finance Mechanism aimed at strengthening production and processing capacity within the shea nut sector.
Background on Shea Nut Industry
Shea nuts, which come from the shea tree commonly found in Nigeria's Savanna belt, are rich in oil and serve as the raw material for shea butter. This valuable product is renowned for its moisturizing, anti-inflammatory, and antioxidant properties. Shea butter is a principal ingredient in cosmetics for skin and hair care, as well as in edible cooking oil, making it a high-value commodity in both domestic and international markets.
The federal government's renewed focus on local processing reflects a strategic shift toward maximizing the economic benefits of Nigeria's agricultural resources while creating sustainable livelihoods for communities involved in shea production.
