Tinubu Extends Ban on Raw Shea Nut Exports for Another Year

President Bola Ahmed Tinubu has authorized a one-year extension of the ban on the export of unprocessed shea nuts, reinforcing the Nigerian government's commitment to enhancing domestic value addition and fostering industrial growth.

This decision was announced in a statement released on Wednesday by Bayo Onanuga, the presidential spokesperson. The measure is said to be in line with the administration's Renewed Hope Agenda and is part of a larger initiative to position Nigeria as a key competitor in the global agricultural value chain.

According to the statement, "President Bola Ahmed Tinubu has approved the extension of the ban on raw shea nut exports for an additional year, beginning from February 26, 2026, to February 25, 2027."

The extended ban, which will be effective from February 26, 2026, until February 25, 2027, seeks to boost domestic processing capabilities, improve the livelihoods of communities engaged in shea production, and encourage the export of processed products instead of raw materials.

Last August, President Tinubu implemented a six-month temporary ban on raw shea nut exportation to mitigate informal trading, enhance local processing, and to protect and develop Nigeria’s shea industry.

This initial ban was aimed at reinforcing Nigeria’s shea value chain, with a goal of achieving around $300 million in revenue in the short term.

The government noted that Nigeria accounts for nearly 40 percent of global shea production but only holds a trivial 1 percent of the market share in the $6.5 billion industry. Vice President Kashim Shettima stated that this situation is unacceptable, projecting that revenues could rise significantly to approximately $300 million in the short term, and increase tenfold by 2027.

He also pointed out that the ban was a collective decision made in collaboration with regional and federal authorities, aimed at economic transformation for national benefit.

However, opponents of the ban contend that Nigeria lacks sufficient capacity to process the entirety of its shea production and that the ban should have been put into effect only after relevant processing infrastructure had been established. They argue that this policy has negatively impacted farmers' earnings, as many have struggled to sell their products since it was enacted.

To facilitate the implementation of the ban extension, President Tinubu has instructed the ministers in charge of the Federal Ministry of Industry, Trade and Investment, as well as the Presidential Food Security Coordination Unit (PFSCU), to develop a comprehensive national framework focused on the shea value chain.

This framework will synchronize industrialization, trade, and investment priorities, utilizing data-driven strategies.

Additionally, the president has endorsed an export protocol created by the Nigerian Commodity Exchange (NCX) and mandated the retraction of all previous waivers that had permitted the direct export of unprocessed shea nuts.

Excess supply must henceforth be exported exclusively through the NCX, according to established regulations.

Moreover, the president has directed the Federal Ministry of Finance to ensure access to a dedicated NESS Support Window, enabling the Ministry of Industry to implement a Livelihood Finance Mechanism aimed at enhancing production and processing capacities within the sector.

Shea nuts, harvested from the shea tree abundant in Nigeria's savanna regions, are processed into shea butter, a vital ingredient in cosmetics and food products. The government has emphasized that processed shea butter commands a market price significantly higher than that of raw nuts, supporting the economic logic behind the export restrictions.

The federal government reiterated its dedication to policies that encourage inclusive growth, local manufacturing, and enhanced participation in global value chains through improved domestic processing.