President Bola Ahmed Tinubu
By Olamilekan Abayomi
President Bola Tinubu has ordered a six-month ban on the export of raw shea nuts, effective immediately. This decision aims to boost local processing, protect and grow Nigeria’s shea industry, and increase the country’s share of the global market. The ban is expected to generate around $300 million annually in the short term and position Nigeria to capture a significant share of the projected 9-billion-dollar global market by 2030.
The ban is a strategic move to curb informal trade, which has been depriving the country of potential revenue. Nigeria loses an estimated 90,000 metric tonnes of raw shea annually to informal cross-border trade. By stopping the export of raw shea nuts, the government hopes to enable local processors to operate at full capacity, creating jobs and increasing rural income.
The shea industry is crucial to the livelihoods of millions of Nigerians, particularly women, who make up over 90% of shea pickers and processors. This policy aims to empower them economically and promote rural transformation. With over 5 million hectares of wild-growing shea trees, Nigeria has the potential to dominate the global shea market.
The ban will enable Nigeria to transition from exporting raw shea nuts to exporting high-value derivatives like butter, olein, and stearin. This move is expected to increase the value addition in the industry and generate more revenue for the country. The government believes that this policy will have a positive impact on the economy and contribute to the country’s economic transformation.
The ban on raw shea nut exports is part of a broader strategy for economic transformation, focusing on industrialization, rural transformation, and gender empowerment. The government is committed to implementing policies that promote economic growth, job creation, and poverty reduction. By supporting local processing and adding value to raw materials, Nigeria can increase its competitiveness in the global market and achieve sustainable economic development.
