President Bola Tinubu has approved a six-month temporary ban on the export of raw sheanut to curb informal trade, boost local processing, protect and grow Nigeria’s shea industry.
Vice-President Kashim Shettima announced the president’s directive on Tuesday during a multi-stakeholder meeting at the Presidential Villa, Abuja.
The News Agency of Nigeria reports that the ban, which is with immediate effect, is subject to review on expiration and designed to boost Nigeria’s shea value chain to generate around $300 million annually in the short term.
Shettima explained that the ban was a collective decision involving the sub-nationals and the Federal Government with clear directions for economic transformation in the overall interest of the nation.
He, therefore, called on the Federal Ministry of Finance and other relevant government agencies to fast-track enforcement.
The vice-president said the decision was not “an anti-trade policy” but a pro-value addition policy designed to secure raw materials for processing factories.
He added that the decision would enable industries run at full capacity thereby boosting rural income and jobs for our people.
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“The decision will transform Nigeria from an exporter of raw shea nut to a global supplier of refined shea butter, oil and other derivatives, ” he said.
Shettima said it was about industrialisation, rural transformation, gender empowerment and expanding Nigeria’s global trade footprint.
On opportunities for job creation and income generation, the vice-president said, “Nigeria produces nearly 40 per cent of the global shea product. Yet, we account for only 1% of the market share of 6.5 billion dollars
“This is unacceptable. We are projected to earn about $300 million annually in the short term, and by 2027, there will be a 10-fold increase. This is our target.
“Mr President is currently in Brazil, and both countries have agreed to prioritize access for Nigerian shea butter and oil into the Brazilian market.
This process will be completed within the next 3 months,” the vice-president added.
He highlighted the gender dimension of the policy, adding, “by protecting the shea industry, we are protecting livelihoods, dignity and opportunity for millions of our women.
The Minister of Agriculture and Food Security, Sen. Abubakar Kyari said that Nigeria was the world’s largest producer of sheanuts, contributing nearly 40 per cent of the global supply.
He, however, said that Nigeria captured less than one per cent of the multi-billion-dollar global shea economy.
“Nigeria produces an estimated 350,000 metric tonnes of shea annually across 30 states, with the potential to reach nearly 900,000 metric tonne.Yet our share of the 6.5-billion-dollar global market is less than one per cent.
“The Rapid Assessment of the Shea Value Chain, conducted by the the Federal Ministry of Industry, Trade and Investment and in close collaboration with the Federal Ministry of Agriculture and Food Security, provided the evidence that shaped this Presidential directive,” he said.
The minister said the assessment showed that over 90,000 metric tonnes of raw shea were lost each year in informal cross-border trade.
“Nigeria’s processors operate at only 35 to 50 per cent capacity despite a national installed capacity of 160,000 metric tonnes.
Kyari said regional neighbours such as Ghana, Burkina Faso, Mali, and Togo had already imposed restrictions to protect their industries.
According to him, Nigeria is vulnerably left “as the outlier and a hotspot for opportunistic and unregulated buying.
While underscoring the enormous potential of the shea trade for Nigeria, the minister said that the shea sector could generate more than $300 million annually in the short term.
“And position Nigeria to capture a significant share of the projected $9-billion global market by 2030.
“Shea is one of the few commodities where our country holds both a comparative and absolute advantage.
“With over five million hectares of wild-growing shea trees, Nigeria has the natural endowment to dominate not only in production but also in value-added processing.
“Shea is also identified in our Zero Oil Plan as a strategic non-oil export. With a projected global market growth from 6.5 billion dollars today to nine billion dollars by 2030.
“Nigeria can position itself at the heart of this expansion,” Kyari stated.
He said that since 90 per cent of pickers and processors of shea were women, investments in this value chain would directly translate into women’s empowerment, rural job creation, and sustainable livelihoods.
This, he said, aligned with the Tinubu administration’s focus on women empowerment.
The Minister disclosed that while Mali, Burkina Faso, and Togo are already restricting raw exports, Nigeria risked being left as the region’s raw depot.
In Kyari’s words: “The benefits of the temporary ban are equally compelling. It will secure domestic supply, enable processors to operate at full capacity, curb informal trade, and lay the foundation for Nigeria to transition from exporting raw kernels to exporting high-value derivatives such as butter, olein, and stearin.” (NAN)
