The Federal Government has extended its ban on the export of raw shea nuts by one year, moving the deadline from February 26, 2026, to February 25, 2027.
The decision, approved by President Bola Tinubu, aims to strengthen Nigeria’s domestic shea processing industry and boost local value addition.
The announcement came from the Presidency on Wednesday, just hours before the initial six-month emergency ban, introduced on August 26, 2025, was set to expire.
Driving Industrialisation and Local Value Addition
Bayo Onanuga, special adviser to the President on Information and Strategy, described the extension as part of the administration’s “Renewed Hope” Agenda.
The policy is designed to move Nigeria from being primarily a raw commodity exporter to an industrial hub with a focus on domestic processing and higher-value exports.
Key objectives of the ban extension include:
- Deepening processing capacity:Encouraging the establishment and growth of local shea butter refineries.
- Supporting local livelihoods:Increasing income opportunities for women and youth in shea-producing communities by keeping processing within the country.
- Boosting export quality:Shifting Nigeria’s export focus from low-margin raw nuts to high-margin shea butter and derivative products for the global cosmetic and food industries.
New Regulatory Framework and NCX Role
To ensure effective implementation, the President has directed a multi-agency approach. The Federal Ministry of Industry, Trade and Investment, alongside the Presidential Food Security Coordination Unit (PFSCU), will develop a unified national framework linking industrialisation with trade and investment priorities across the shea value chain.
A major regulatory change is the centralisation of raw shea nut exports under the Nigerian Commodity Exchange (NCX):
- Revocation of previous waivers:All direct export waivers have been cancelled.
- NCX as the exclusive channel:Any surplus raw shea nuts not processed locally must now be exported through the NCX, following approved guidelines.
Financial Support for Local Stakeholders
Recognising that a ban alone cannot build a sustainable industry, President Tinubu has instructed the Federal Ministry of Finance to provide targeted funding via a Nigerian Export Supervision Scheme (NESS) Support Window.
This fund will pilot a Livelihood Finance Mechanism to support local producers and processors in scaling up operations to meet the demand generated by the export restriction.
Balancing FX Concerns and Long-Term Profits
The ban extension follows extensive government deliberation where stakeholders, including producers, exporters, and FX analysts, had previously been assured that the policy would be reviewed.
Experts warn of short-term foreign exchange losses and the potential risk of domestic oversupply if local refineries cannot process all harvested nuts.
Despite these issues, the Federal Government emphasises that the long-term benefits, transforming Nigeria into a competitive player in the global shea market, outweigh temporary disruptions.
Nigeria aims to capture a larger share of the multi-billion-dollar global shea industry by focusing on domestic manufacturing, currently filled with products processed in Europe and Asia from West African raw materials.
