In a bold move to redefine its position in the global shea industry, Nigeria has announced a six-month ban on the export of raw shea nuts, a decision that has sent ripples through both domestic and international markets. The policy, effective immediately as of late August 2025, was approved by President Bola Tinubu and publicly unveiled by Vice President Kashim Shettima during a multi-stakeholder meeting at the Presidential Villa in Abuja. The government’s aim is clear: transform Nigeria from a mere supplier of raw shea nuts into a powerhouse for refined shea butter, oil, and other high-value derivatives.
"Nigeria shea is our green wealth. We produce nearly 40% of the world supply, yet capture less than 1% of the $6.5 billion global market. That imbalance will end now," President Tinubu declared in a statement, as reported by BBC. The numbers are as striking as they are frustrating: Nigeria boasts the world's largest output of shea nuts—accounting for almost two-fifths of global production—yet benefits little from the booming international trade in shea-based products.
The ban, which will be reviewed after six months, is not just about economics. It is deeply intertwined with social policy, especially for the women who form the backbone of the industry. According to Vice President Shettima, women make up 90%—and by some estimates, up to 95%—of shea nut pickers in Nigeria. "This is not an anti-trade policy; it is a pro-value addition policy," Shettima emphasized. "We want our factories running at full capacity. We want our women earning more. And we want Nigeria to move from exporting raw nuts to selling butter, oil, and other derivatives to the world."
For generations, shea nuts have been more than just an agricultural product in Nigeria. Grown primarily in Niger, Kwara, Kebbi, Nasarawa, and Kogi States, the shea tree is a fixture of rural landscapes. The process of extracting shea butter—a creamy, vitamin-rich substance used in everything from cooking to cosmetics—remains largely manual and labor-intensive, with local women harvesting, crushing, roasting, and boiling the nuts. The labor is arduous but essential, providing livelihoods for thousands of families and empowering women in regions where economic opportunities can be scarce.
The government’s new policy is designed to protect these livelihoods. "The protection of the shea industry is the protection of livelihoods, dignity, and opportunities for women," Shettima said during the Abuja meeting, as cited by BBC. By keeping more of the value chain within Nigeria, officials hope to boost rural incomes, create jobs, and turn the country into a global supplier of refined shea products.
The move comes as Nigeria joins a growing list of West African nations—including Burkina Faso, Mali, Togo, Ivory Coast, and Ghana—that have restricted or banned the export of raw shea nuts in recent years. As Agriculture Minister Abubakar Kyari pointed out, these regional neighbors have already acted to protect their own industries, leaving Nigeria exposed to unregulated international buyers. With over five million hectares of wild shea trees, Nigeria is uniquely positioned to dominate the global market for higher-value derivatives like shea butter and stearin—if it can capture more of the processing and branding within its borders.
There is a strong economic incentive behind the policy. The global demand for shea products has surged in recent decades, driven by the cosmetics, food, and personal care industries. In 2006, the European Union formally approved the use of shea butter as a cost-effective and performance-enhancing alternative to cocoa butter in chocolate production. This opened up new markets and opportunities, but it also increased the pressure on Nigeria’s supply chain. According to government estimates, the country loses about 39% of its shea nuts to the international market each year, often at prices that do not reflect the true value added by local labor.
Prices for shea nuts and their products vary widely within Nigeria. As of August 28, 2025, unbranded shea nuts sell for about 5,000 naira (roughly $3.26) per kilogram in local markets, while branded, refined products can fetch up to 25,000 naira ($16.29) per kilogram online. The government’s goal is to shift more of this value into the hands of Nigerian producers, aiming to generate about $300 million annually from the shea industry in the short term, with ambitions to multiply that figure tenfold by 2027.
Beyond economics, the health benefits of shea butter are widely recognized. Dr. Jeannette Aryee-Boi, a local expert, notes that shea butter contains vitamins A and E, powerful antioxidants that help heal various skin conditions and even offer anti-aging properties. "We recommend that after you bathe, just use a towel to dry the skin and then apply shea butter to lock the moisture in," Dr. Aryee-Boi advised. While shea butter is not a cure-all, it remains a staple in Nigerian households, valued for its versatility and effectiveness.
Looking outward, Nigeria is not acting in isolation. The government is currently in negotiations with Brazil to secure preferential market access for Nigerian shea products within the next three months. This international outreach is part of a broader strategy to ensure that, once the ban is lifted or modified, Nigerian producers will have ready markets for their refined goods rather than just raw exports.
Of course, the policy is not without its critics. Some traders worry that the ban could lead to short-term losses or disrupt existing trade relationships. Others question whether local processing facilities have the capacity to absorb the increased supply and whether the promised jobs will materialize quickly enough. Still, the government is adamant that the long-term benefits outweigh the risks. The ban is described as a temporary but necessary step to "secure raw materials for our processing factories and enabling industries to run at full capacity," as Shettima put it.
In the coming months, all eyes will be on Nigeria to see whether this ambitious policy can deliver on its promises. If successful, it could serve as a model for other resource-rich nations seeking to move up the value chain and empower their citizens—especially women—through smarter trade and industrial policies. For now, the shea nut ban stands as a testament to Nigeria’s determination to turn its natural wealth into broader prosperity, both at home and abroad.
