The Centre for the Promotion of Private Enterprise (CPPE) has raised concerns over the immediate enforcement of the Federal Government’s six-month ban on raw shea nut exports, warning that the policy is already disrupting the value chain, hurting farmers, and eroding investor confidence in Nigeria’s non-oil export sector.
In a policy brief released on Sunday and signed by CPPE’s Chief Executive Officer, Dr. Muda Yusuf, the group acknowledged the long-term goal of promoting local value addition and industrialisation. However, it warned that the abruptness of the ban is counterproductive and risks reversing recent gains in the non-oil economy.
“The intention behind the ban is commendable,” Yusuf said, “but the sudden implementation has created shockwaves across the shea industry from farmers and aggregators to exporters and logistics providers.”
Nigeria is a global heavyweight in shea nut production, accounting for an estimated 40% of global output. The new policy aims to force domestic processing of raw shea to create jobs, build industrial capacity, and reduce reliance on crude exports.
But Yusuf warned that the timing and approach of the ban are undermining those very goals.
Since the ban was announced, CPPE reports that shea nut prices have plummeted by more than 30%, dealing a heavy blow to rural incomes.
Exporters who had secured international contracts are now exposed to legal and reputational risks due to potential defaults. Some actors in the value chain who had accessed credit facilities to finance operations are also now at risk of defaulting on their loans.
“Thousands of jobs tied to shea cultivation, aggregation, logistics, and exports are on the line. This ban, though well-intended, effectively punishes farmers to benefit processors turning a potentially inclusive policy into a zero-sum game,” Yusuf warned.
The CPPE cautioned that abrupt policy decisions like this could jeopardise Nigeria’s broader push to diversify its economy away from oil.
“Such unpredictable moves deter investment, not just in the shea industry, but across the entire non-oil export ecosystem,” Yusuf said. “Over $3 billion was earned from non-oil exports in Q1 2025. That progress could be reversed if investor confidence weakens.”
CPPE’s Recommendations
To avoid further disruption, CPPE urged the government to adopt a phased and consultative approach that would:
- Introduce clear timelines for phasing out raw shea exports.
- Allow current export contracts to be fulfilled to avoid default.
- Support processors through structural reforms — not by suppressing farmgate prices.
- Address systemic issues such as power supply, logistics, and access to finance.
- Ensure that farmers continue to earn fair market value for their produce.
- Create ongoing dialogue platforms for key stakeholders in the shea value chain.
Yusuf stressed that competitiveness in processing should be driven by innovation and efficiency, not by regulatory measures that depress input prices.
“Rural livelihoods must be protected, and Nigeria’s export credibility must be preserved,” he said. “A rushed ban undermines both.”
The CPPE concluded by reiterating its support for local value addition, but insisted that policies must be market-driven, predictable, and inclusive if they are to succeed.
“We need a transition that allows time for adjustment, supports value chain players, and builds on the export momentum we’ve already achieved. True industrialisation should lift everyone not just one segment at the expense of another,” Yusuf concluded.
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