New one-year directive withdraws waivers, channels surplus through regulated exchange framework to deepen value addition in Nigeria’s shea industry…..
President Bola Tinubu has approved a fresh one-year extension of the ban on the export of raw shea nuts, reinforcing the Federal Government’s push to shift Nigeria away from raw commodity exports toward higher-value processed goods.
The renewed directive takes effect from February 26, 2026, to February 25, 2027, according to an official statement issued in Abuja by the President’s spokesman, Bayo Onanuga.
The Presidency said the extension underscores the administration’s determination to strengthen domestic value addition, deepen local processing capacity and reposition Nigeria’s shea industry to earn more from processed exports rather than unprocessed raw materials.
Driving industrialisation and jobs
According to the statement, the policy is designed to stimulate local manufacturing, generate employment across shea-producing communities and improve incomes along the value chain.
“The decision underscores the administration’s commitment to advancing industrial development, strengthening domestic value addition, and supporting the objectives of the Renewed Hope Agenda,” the statement read.
It added that the ban aims to expand Nigeria’s processing capacity, enhance livelihoods in producing communities and grow exports anchored on value-added products such as shea butter.
The move forms part of broader efforts to transform Nigeria into a more industrial and export-driven economy by discouraging the export of raw agricultural commodities.
From temporary ban to full-year extension
The policy was first introduced in August 2025 as a six-month temporary measure intended to curb informal trade, protect local processors and safeguard long-term sustainability in the shea sector.
At the time, government officials cited concerns over the large-scale export of unprocessed shea nuts with minimal domestic value addition, which they said undermined investments in local processing facilities.
The initial ban drew mixed reactions within the non-oil export community. While processors welcomed the measure as a protective step for domestic industry, some exporters raised concerns about foreign exchange earnings and potential supply chain disruptions.
Recent consultations with stakeholders had raised expectations of a possible review, but the new directive confirms the government’s decision to maintain and formalise the restriction for another year.
New regulatory framework and funding support
To ensure compliance and improve coordination, President Tinubu directed the Federal Ministry of Industry, Trade and Investment — working with the Presidential Food Security Coordination Unit — to implement a unified national framework for developing the shea value chain.
The President also approved the adoption of an export regulatory framework developed by the Nigerian Commodity Exchange to standardise and streamline shea exports.
All previously granted waivers allowing the direct export of raw shea nuts have been withdrawn with immediate effect. Any surplus production must now be channelled strictly through the approved exchange platform to guarantee transparency, traceability and fair pricing.
In addition, the Federal Ministry of Finance has been directed to facilitate access to a dedicated NESS Support Window to assist operators in the sector.
The intervention will support the Ministry of Industry, Trade and Investment in piloting a Livelihood Finance Mechanism aimed at boosting production capacity, improving processing efficiency and strengthening global competitiveness.
Why shea matters
Shea nuts, harvested primarily across Nigeria’s savanna belt, are oil-rich fruits used in cosmetics, pharmaceuticals, confectionery and edible oil production.
When processed into shea butter, the product commands significantly higher prices on international markets compared to raw nuts. Processed shea butter also enjoys stronger global demand, offering greater foreign exchange potential and more domestic job creation.
Since the ban first took effect, the policy has sharply divided stakeholders in the non-oil export sector, with producers and exporters expressing differing views on its economic impact.
With the extension now in place, the focus shifts to whether deeper processing capacity, improved regulation and targeted financial support can translate the policy into tangible gains for Nigeria’s shea-producing communities and broader industrial ambitions.
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