Shea Butter Ban: Experts split over Tinubu’s six-month executive order

Industry stakeholders are offering a variety of responses to President Bola Tinubu’s recent announcement to suspend the export of raw shea nuts for a period of six months.

The government asserts that this decision is strategically designed to stimulate local processing capabilities and enhance value addition within Nigeria’s agro-economy, which has long been crucial for the nation’s development.

Shea nuts, often referred to as “women’s gold,” play a pivotal role in the livelihoods of countless rural women, particularly in the northern regions of Nigeria. Here, the collection and initial processing of these valuable nuts form the backbone of economic activities for many families and communities.

However, there are mounting concerns regarding the implementation of this policy, particularly in relation to the country’s domestic refining capacity. Hon. Dele Kelvin Oye, the former National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and current Chairman of the Alliance for Economic Research and Ethics Ltd/Gte, has called upon the Federal Government to offer clear guidelines and rationale surrounding its recent policy aimed at industrializing the shea nut sector.

In a message to Nairametrics, Oye expressed his appreciation for the administration’s commitment to enhancing value addition but cautioned against the dangers of rushed policy changes. He emphasized the necessity for adequate transition periods and extensive consultations with relevant stakeholders to ensure the policy’s effectiveness and sustainability. This careful approach is vital for the long-term success of the initiative and for safeguarding the interests of those whose livelihoods depend on the shea nut industry.

“While we recognise and commend the administration’s commitment to value addition, we caution that immediate policy reversals without adequate transition and sector-wide consultation risk undermining ongoing commitments, investment plans, and the livelihoods of many members of our Alliance trade networks,” he said.

He further stressed the importance of proper implementation, warning that even well-intentioned policies could fail if poorly executed.

“We need to draw attention to the potential risks of poor implementation of a good policy. We hereby seek clarification and direction from Mr President to ensure that his good policies are not poorly executed,” he added.

One shea nut exporter who also spoke to Nairametrics on condition of anonymity said

“Some shea nut exporters have about $4million subsisting contracts before this policy was announced. We are talking about loans and other facilities that need to be serviced. Many may run into serious debts as no consultation was made before the announcement.”

An industry expert who spoke to Nairametrics on the condition of anonymity on the issue said, “We need to establish local capacity to refine. We need to be careful otherwise; we will be penalising the exporters unnecessarily.

There are many other products. This can lead to people smuggling out the product across the porous borders. How do you enforce this?”

Agricultural extension expert at the University of Abuja, Grace Ajayi, speaking to Nairametrics said while the policy has potential, the reality on the ground presents serious challenges.

“Processing industries are still underdeveloped, and many operators struggle with high energy costs, limited access to credit, and poor infrastructure. If the suspension is enforced without addressing these issues, farmers and collectors may suffer losses because processors won’t be able to buy all the supply,” she warned.

Regional shea nut export bans put pressure on Nigeria
A policy document obtained by Nairametrics further explains the rationale behind the presidential decision.

According to the document, the ban becomes necessary because Nigeria has become increasingly vulnerable due to regional trade dynamics.

While Burkina Faso, Mali, Ghana, and Togo have already banned the export of raw shea nuts to strengthen their domestic processing industries, Nigeria remains the only country in the sub-region still allowing such exports.

“These bans have increased demand for Nigeria’s raw shea nuts, driving up informal exports and further reducing the availability of raw materials for Nigerian processors—undermining domestic value addition

“Nigeria is now the only country in the region still permitting raw shea exports, making it a hotspot for opportunistic buying.

International buyers—including traders from neighboring countries—are flooding Nigeria to exploit this policy gap.

This inflow has deepened scarcity and undermines local processors, who now compete with exporters for raw supply.”

The document stated further “There is an opportunity to boost the shea value chain to generate around $300million annually in the short term if the recommended ban is enforced appropriately and efficiently.”

Action will further boost non-oil exports
Some experts have noted that the policy could significantly strengthen Nigeria’s non-oil export sector in the long run.

A trade analyst, Dr. Ibrahim Musa said the suspension is designed to reposition Nigeria in the global shea value chain, where the country has long been disadvantaged.

“Nigeria is the largest producer of shea in the world, but the benefits to our economy have been minimal because we mostly export raw nuts. By processing locally into shea butter, cosmetics, and other high-value products, we can increase foreign exchange earnings, reduce dependency on crude oil, and create sustainable jobs,” he explained.

He further noted that countries such as Ghana and Burkina Faso have shown how value addition in the shea industry can translate into billions of dollars in revenue and significant employment opportunities.