Nigeria Extends Ban on Raw Shea Nut Exports, Aiming for Industrial Boost
ABUJA, Nigeria – Nigeria has extended its ban on the export of raw shea nuts for another year, a move authorities say is designed to encourage domestic processing and increase the nation’s share of the global shea market. The ban, initially implemented in August 2025 as a six-month moratorium, is now in effect from February 26, 2026, to February 25, 2027, according to a statement released by President Bola Tinubu’s spokesman, Bayo Onanuga.
The decision reflects a growing trend among West African producers to capture more value from their commodities, rather than exporting them in raw form. Nigeria currently supplies nearly 40% of the world’s shea, with annual production ranging from 350,000 to 500,000 tons. However, the country only controls approximately 1% of the $6.5 billion global shea market.
The vast majority of Nigeria’s shea exports are currently raw nuts. Processed shea butter, a key ingredient in cosmetics, pharmaceuticals, and as a cocoa butter equivalent in chocolate, commands significantly higher prices – 10 to 20 times that of the raw product.
Under the new regulations, all shea exports will be channeled through the Nigeria Commodity Exchange, eliminating previous exemptions for direct shipments of raw nuts. The government also intends to leverage the Nigeria Enterprise Support Scheme to provide financing for new processing facilities.
The policy has already begun to impact prices, with nut prices falling by roughly one-third since the initial announcement in 2025. By the end of the December harvest season, shea nuts were trading around 850 naira per kilogram.
While industry groups previously requested a grace period to mitigate contract losses, the government declined to offer one.
Nigeria is not alone in this approach. Other West African nations, including Burkina Faso, Mali, Ivory Coast, and Togo, have implemented similar measures to promote local processing.
The success of the ban hinges on addressing existing challenges within the industry, including limited processing capacity, unreliable electricity supply, and inadequate logistics infrastructure. If Nigeria can successfully expand formal processing plants and improve traceability, it could significantly increase export earnings and create employment opportunities. However, failure to do so risks depressing farm incomes without generating substantial industrial gains.
