Boosting Local Industry: President Tinubu Extends Ban on Raw Shea Nut Export Until 2027

 

​In a decisive move to strengthen Nigeria's industrial base and maximize the economic potential of its agricultural sector, President Bola Ahmed Tinubu has officially extended the ban on the export of raw shea nuts for another year. Effective from February 26, 2026, until February 25, 2027, this policy extension underscores the administration's "Renewed Hope" Agenda, which prioritizes domestic value addition over the exportation of primary commodities. By keeping raw shea nuts within the country, the Federal Government aims to revitalize local refineries, create thousands of jobs in rural communities, and position Nigeria as a global hub for refined shea butter rather than just a raw material depot.

​The Economic Rationale: Why Raw Shea Nut Exports Are Banned

​The decision to sustain the ban is rooted in a startling economic reality: processed shea butter can fetch between 10 and 20 times the price of raw shea nuts on the international market. Despite Nigeria producing nearly 40% of the world's shea nuts, the country has historically captured less than 1% of the $6.5 billion global revenue generated by downstream products like cosmetics and pharmaceuticals.

​"We are transforming Nigeria from an exporter of raw kernels to a global supplier of high-value derivatives," the presidency stated via Special Adviser Bayo Onanuga. By restricting raw exports, the government is forcing a shift toward industrialization. This strategy is designed to ensure that the wealth generated from Nigeria's "Green Gold" stays within its borders, benefiting local processors and the predominantly female workforce involved in nut collection.

​Strategic Implementation and the NCX Framework

​To ensure the policy doesn't just exist on paper, President Tinubu has introduced a more structured implementation framework for 2026. Key highlights of the new directive include:

• ​Withdrawal of Waivers: All previous waivers that allowed certain companies to export raw shea nuts have been revoked to ensure a level playing field.
• ​The NCX Mandate: Any excess supply of raw shea nuts that cannot be absorbed by local factories must now be exported exclusively through the Nigerian Commodity Exchange (NCX) framework.
• ​Unified National Framework: The Ministry of Industry, Trade and Investment, alongside the Presidential Food Security Coordination Unit (PFSCU), has been tasked with aligning trade and investment priorities across the entire value chain.

​These measures are intended to curb the "informal and illicit trade" that has plagued the sector, ensuring that every nut leaving the country contributes to the national treasury and adheres to strict quality guidelines.

​Empowering Rural Communities: The Livelihood Finance Mechanism

​One of the most innovative aspects of the 2026 extension is the introduction of a Livelihood Finance Mechanism. President Tinubu has directed the Ministry of Finance to provide access to a dedicated NESS (Nigerian Export Supervision Scheme) Support Window. This fund will be used to pilot financial support for rural shea-producing communities, particularly in the Savanna belt.

​The goal is to provide local pickers and small-scale processors with the machinery and capital needed to transition from manual to mechanical processing. By strengthening capacity at the "base of the pyramid," the government hopes to mitigate the initial price shocks that sometimes occur when export markets are restricted, ensuring that the farmers themselves are the primary beneficiaries of the value-added revolution.

​Challenges and the Path to $300 Million

​While the ban is an ambitious step toward industrialization, it is not without its hurdles. Industry experts, including the Centre for the Promotion of Private Enterprise (CPPE), have previously warned that sudden export restrictions can lead to a drop in domestic prices if local factories cannot immediately absorb the surplus. Currently, Nigeria’s processing plants operate at approximately 35–50% capacity.

​The government’s short-term target is to generate $300 million annually from processed shea exports, with hopes to reach $3 billion by 2027. To achieve this, the administration is simultaneously working to address "structural constraints" like erratic power supply and high logistics costs, which have historically made Nigerian-processed butter less competitive than that of neighboring West African countries.

​Conclusion: A Bold Bet on Nigeria’s Industrial Future

​The extension of the ban on raw shea nut exports is a clear signal that Nigeria is moving away from a colonial-era commodity export model. By betting on local processing, President Tinubu is attempting to build a more resilient and self-sufficient economy. As the policy takes hold through 2026, the success of the "Renewed Hope" Agenda in this sector will be measured by the rise of Nigerian-branded shea products on the shelves of global retail giants. For Nigeria, the message is clear: the era of selling our heritage for pennies is over; the era of value is here.