Abuja – Prices of shea nuts in Nigeria have fallen sharply, dropping by 33 percent, following the Federal Government’s decision to impose a six-month ban on the export of the commodity.
Reports from the international financial news agency, Bloomberg, indicate that the price of shea nuts closed at ₦800,000 per ton (about $521) at the end of trading on Thursday, down from recent highs.
The Federal Government had on August 26th announced a temporary suspension of raw shea nut exports. President Bola Ahmed Tinubu directed the measure as part of broader reforms to boost local processing and create more jobs in the agricultural value chain.
Minister of Agriculture and Food Security, Abubakar Kyari, explained that the ban was introduced to “secure supply for local processors, create jobs, and protect a value chain where 95 percent of pickers are women.”
He noted that although Nigeria produces nearly 40 percent of global shea nuts, the country benefits from less than 1 percent of the $6.5 billion global market value because most of the produce is exported raw without value addition.
While some industry players see the policy as a golden opportunity to grow local processing, others warn of short-term economic pains.
Chief Executive Officer of Vestance, a Lagos-based agricultural consultancy, Rildwan Bello, cautioned that exporters may be at risk of defaulting on existing contracts, given the sudden drop in international trade.
“Exports made the market vibrant. Local demand is not as high as local supply,” Bello said, adding that building a viable processing industry will take time.
On the other hand, Mobola Sagoe, CEO of Lagos-based beauty brand Shea Origin, welcomed the move, saying it could help curb the massive illegal exportation of raw shea nuts from Nigeria and across West Africa. “The decision could not have come at a better time,” she said.
Similarly, Ali Saidu, head of Salid Agriculture Ltd, described the ban as an opportunity for local processors.
He revealed plans to scale up shea butter production at his company’s plant in Niger State during the six-month period.
But some development experts remain skeptical.
Adesuwa Akinboro, Country Director at TechnoServe, a US-based nonprofit supporting smallholder farmers, argued that while the intention is good, the timeframe is too short to deliver meaningful impact. “The ban will initially shrink the market and reduce incomes. Six months is not enough to fully reap the benefits,” she observed.
The Federal Government maintains that the temporary suspension will allow the country to reposition itself in the global shea industry, ensuring more value is retained locally and rural women who dominate the sector benefit from better opportunities.