Nigeria Halts Raw Shea Exports to Strengthen Local Industry

Nigeria has taken a bold step to reposition itself as a global leader in the shea industry with a new policy that temporarily suspends the export of raw shea nuts. The decision, announced under President Bola Tinubu’s administration, is aimed at boosting local processing, creating jobs, and ensuring the country secures a stronger place in the global shea value chain.

The Minister of Information and National Orientation, Mohammed Idris, explained the move during the 20th Institute of Chartered Accountants of Nigeria Northern Zonal Accountants’ Conference in Minna. Represented by the Director-General of the Voice of Nigeria, Mallam Jibrin Baba Ndace, the minister described the suspension as a forward-looking measure with long-term benefits for Nigeria’s rural economy.

According to Idris, Nigeria currently accounts for more than half of the world’s shea nut production. Despite this, the country has mostly remained a supplier of raw materials to other nations, which process the nuts into high-value products like shea butter, cosmetics, and skincare items. “President Bola Tinubu’s recent temporary suspension of raw shea exports is not a mere policy experiment but a bold and strategic decision aimed at unlocking the full potential of our rural economy,” Idris said. “By insisting that more of our shea be processed locally, the president is ensuring that Nigeria does not remain a supplier of raw materials but becomes a global leader in high-value shea products.”

The statement further noted that Niger State, one of Nigeria’s main shea production hubs, stands to gain significantly from the new directive. Farmers, processors, and small businesses in the state are expected to benefit from increased investment in processing facilities, technology transfer, and a stronger local value chain. Idris explained that the policy would stimulate local investment, accelerate the development of processing plants, and create sustainable jobs for young people and women in rural areas. He added that beyond domestic gains, the policy could help Nigeria boost foreign exchange earnings and strengthen its role in global trade.

The minister praised the National Shea Products Association of Nigeria for backing the government’s new approach and assured stakeholders that the administration was committed to creating an enabling environment for the shea industry to thrive. He described the initiative as part of a wider economic renewal strategy embedded in the Tinubu government’s “Renewed Hope Agenda,” which emphasizes inclusivity, accountability, and national re-orientation.

As part of his remarks at the conference, Idris also spoke on the broader theme of “Socio-Economic Potentials, Accountability and National Re-Orientation: Unlocking Nigeria’s Future.” He stressed that accountability remains the foundation of any thriving society and urged Nigerians to embrace positive values, hold institutions accountable, and prioritize the nation’s development above personal interest.

Highlighting some of the government’s reforms, Idris mentioned progress in fiscal discipline, digital transformation, and infrastructure expansion. He pointed to large-scale projects such as the Lagos–Calabar Coastal Superhighway, the Badagry–Sokoto Superhighway, and the rehabilitation of the Eastern rail corridor as examples of ongoing efforts to ensure equitable development across the country. In addition, he noted improvements in transparency, including the use of the Treasury Single Account and the Government Integrated Financial Management Information System to strengthen oversight.

Idris also cited Nigeria’s slight upward movement in the Transparency International Corruption Perceptions Index — from 145th in 2023 to 140th in 2024 — as evidence of progress in governance and accountability. For him, these reforms are signs that the administration is laying the foundation for a more stable and prosperous economy.

The suspension of raw shea exports, which was officially approved in August 2025, is expected to last six months in the first instance. Vice President Kashim Shettima, who announced the directive at a multi-stakeholder meeting in Abuja, explained that the temporary measure was necessary to curb informal trade, support local processors, and reposition Nigeria’s shea industry for greater value addition. He noted that if properly implemented, the policy could generate as much as $300 million in the short term.

For farmers and rural communities, the suspension represents both a challenge and an opportunity. While those used to exporting raw shea directly may face short-term disruptions, the long-term benefits could be substantial. With local processing capacity expanded, farmers may begin to earn more from their harvests, while processors can scale up production and compete globally in the value-added shea market.

Industry stakeholders also believe that Nigeria has the potential to dominate the international shea products market if it continues to encourage local value addition. Shea butter and other derivatives are in high demand globally, particularly in the cosmetics and food industries. Currently, countries like Ghana, Burkina Faso, and Ivory Coast are key players in this space, but Nigeria’s sheer volume of production gives it a competitive edge provided it invests in modern processing facilities and quality standards.

The policy shift has already sparked optimism among local investors and entrepreneurs who see opportunities in setting up processing plants, creating packaging brands, and exporting finished products rather than raw nuts. For women’s cooperatives in rural areas, where shea nut collection and processing are common livelihoods, the new direction could provide empowerment and a stronger financial base.

As Nigeria moves into this new phase, the government insists the suspension is not permanent but a strategic pause to reset the sector. The hope is that by the time the review period ends, Nigeria will have developed stronger structures to process, package, and export shea products that command higher value on the international market.

In the end, the government’s message is clear: Nigeria must stop being merely a supplier of raw materials to the world and start reaping the full benefits of its natural resources. With over 50 percent of global shea production, the country is well placed to become a true global leader in the industry. The suspension of raw shea exports may be temporary, but the long-term vision is to build a stronger, more competitive, and inclusive shea sector that works for farmers, processors, and the Nigerian economy at large.