Nigeria’s government has taken a bold step to reshape its role in the global shea industry, announcing an immediate six-month ban on the export of raw shea nuts. The policy, unveiled on August 26, 2025, by Vice President Kashim Shettima at a multi-stakeholder meeting in Abuja, is designed to force investment into domestic processing and secure Nigeria’s place in a global market valued at $6.5 billion. The move, which comes under President Bola Ahmed Tinubu’s Renewed Hope Agenda, is one of the country’s most interventionist economic actions in recent years.
The ban is not about closing Nigeria’s doors to trade, officials insist, but about adding value at home. "This is not an anti-trade policy but a pro-value addition policy. Nigeria produces nearly 40 per cent of the global shea product, yet we account for only one per cent of the market share. That is unacceptable," Shettima said, according to Business a.m. Live. The government hopes that by keeping raw nuts within the country, local processors will finally have enough feedstock to operate at full capacity, producing refined shea butter, olein, and stearin—high-value derivatives used in cosmetics, pharmaceuticals, and food industries worldwide.
Nigeria is the world’s largest grower of shea nuts, producing an estimated 350,000 metric tonnes annually across 30 states. Yet, despite this agricultural might, the country captures less than one percent of the global market’s revenues. A recent rapid assessment by the Presidential Food Systems Coordination Unit found that up to 90,000 metric tonnes of raw kernels are smuggled out of the country each year, depriving local processors and the government of both feedstock and export earnings. This rampant informal trade has left Nigerian factories operating at just 35 to 50 percent of their installed capacity, a far cry from the national potential of 160,000 tonnes.
Neighboring West African countries—Ghana, Burkina Faso, Mali, Togo, and Ivory Coast—have all imposed similar restrictions on raw shea exports in recent years to protect their own industries. As a result, Nigeria has become the region’s de facto raw shea depot, attracting unregulated foreign buyers who pay little and export the nuts without investing in local communities. Agriculture Minister Abubakar Kyari warned, "Without corrective action, Nigeria risked becoming permanently locked in as a raw material supplier."
The government’s new policy is ambitious: it aims to unlock $300 million in short-term revenues, with projections of a tenfold increase by 2027. The hope is that, by forcing raw nuts into domestic channels, Nigerian processors will reach full utilization and supply refined shea derivatives not just to local markets but to global supply chains in cosmetics and confectionery. Industry analysts, such as Temi Popoola of NGX Group, believe the move could also boost Nigeria’s appeal to capital market investors focused on agri-processing and consumer goods. "The story here is not just about commodities but about industrial policy. If Nigeria gets this right, it could catalyse investment across the agricultural value chain," Popoola told Business a.m. Live.
There’s a strong gender dimension to the policy as well. About 90 percent of shea pickers and processors in Nigeria are women, many of whom live in rural areas with few other cash income opportunities. Advocates argue that retaining more value locally will directly empower women, create jobs, and reduce poverty. "By protecting the shea industry, we are protecting livelihoods, dignity and opportunity for millions of our women. We are not closing doors, we are opening better ones," Shettima said.
This is not just about industrialization, but about rural transformation and gender empowerment, Shettima emphasized at the Abuja meeting. The ban, he said, is designed to secure raw materials for Nigeria’s processing factories and enable industries to run at full capacity, boosting rural income and jobs for the nation’s people. The administration has tied the policy to broader rural development and industrialization goals, positioning shea as a strategic non-oil export under the government’s Zero Oil Plan.
The timing of the ban is also strategic. Demand for shea-based products is rising globally, driven by consumers seeking natural alternatives in beauty and food products. The global shea economy is projected to grow from $6.5 billion today to $9 billion by 2030, with West Africa expected to remain the dominant supplier. Shea butter, in particular, is a staple in haircare products, lotions, lip balms, and even certain sweets, thanks to its moisturizing and anti-inflammatory properties. Dermatologist Zainab Bashir, speaking to Associated Press, called shea butter "one of the most important bases for skincare, especially now that a lot of people are tilting toward nontoxic skincare."
But the journey won’t be easy. Experts like Ikemesit Effiong, a partner at Lagos-based risk advisory firm SBM Intelligence, cautioned that the ban alone may not be enough. "The ban seems to suggest that the government has identified a supply-gap issue, but an export ban does little actually to lock in current in-country production solely for Nigerian processors," Effiong told Associated Press. To truly transform the sector, he argued, more investment in domestic industries and better regulation are needed.
Some have pointed out the apparent contradiction in President Tinubu’s broader economic philosophy. While he has positioned Nigeria as a free-market economy—removing subsidies on fuel and electricity, floating the currency, and reversing import bans—the raw shea export ban is a clear interventionist move. Still, officials argue that the policy is in line with global trends and necessary for long-term growth. The measure follows the recent opening of a major shea butter processing plant in Niger state, which officials describe as one of Africa’s largest.
The ban is also expected to have ripple effects beyond Nigeria’s borders. In São Paulo, President Tinubu recently agreed with Brazilian officials to prioritize Nigerian shea butter and oil in the Brazilian market, with access expected within three months. Brazil’s cosmetics and food processing industries are among the world’s largest, offering a potentially transformative outlet for Nigerian exports.
For rural farmers, especially women, the stakes are high. Agriculture expert Ahmed Ismail observed, "A lot of poor people who grow the crop and rely on it for sustenance are struggling to get by because of a lack of regulation, which means they get so little despite its high value internationally." He believes the ban will help provide more jobs locally and enhance income for the government. The government hopes the policy will not only increase earnings from the fruit of shea nut trees from $65 million to $300 million annually but also set the stage for a projected $3 billion by 2027 if the export ban remains in force.
In the end, Nigeria’s six-month ban on raw shea nut exports is a high-stakes gamble—one that could redefine the country’s place in the global value chain, empower rural women, and transform a centuries-old industry. Whether the policy delivers on its ambitious promises will depend on the government’s ability to back it up with real investment and effective enforcement. For now, the world will be watching to see if Nigeria can finally turn its shea gold into real prosperity at home.
