Nigeria Enforces Export Ban to Boost Shea Industry Refining

In a bold move to reshape its role in the global shea market, Nigeria has imposed a six-month ban on the export of raw shea nuts, effective August 25, 2025. The policy aims to stimulate domestic refining and increase the country’s share of the lucrative shea product market. Nigeria currently supplies approximately 40% of the world’s raw shea nuts, yet holds just 1% of the global market for refined shea products such as shea butter. Government officials say the ban is designed to reverse this imbalance and encourage investment in local processing infrastructure. “This is about value retention,” said a spokesperson from the Ministry of Trade and Investment. “We want to ensure that Nigeria is not just a supplier of raw materials, but a leader in finished goods.” The economic potential is significant. Analysts estimate the policy could generate $300 million in short-term revenue and scale up to $3 billion by 2027 if sustained and supported by industrial growth. Nigeria produces roughly 500,000 metric tonnes of shea nuts annually, with 55% currently processed into shea butter domestically. However, countries like Ghana and Burkina Faso continue to dominate the export of refined shea products. Europe remains the largest destination for shea exports. In 2020, between 250,000 and 300,000 tonnes of shea products were shipped to the continent, including up to 90,000 tonnes of shea butter. Nigeria contributes to this trade, but officials hope the new policy will elevate its standing and competitiveness in the global market. Industry stakeholders are watching closely to see whether the ban will lead to long- term transformation or short-term disruption. For now, the message from Abuja is clear: Nigeria intends to move up the shea value chain.