President Bola Tinubu has placed a temporary ban on the export of raw shea nuts, with immediate effect.
Tinubu approved a six-month temporary ban on the export of raw shea nut to address informal trade, enhance local processing, safeguard and improve Nigeria’s shea industry.
The ban is subject to review on expiration and specifically aimed at boosting the country’s shea value chain to generate around $300 million yearly in the near future.
Vice President Kashim Shettima, who announced the president’s directive on Tuesday during a multi-stakeholder meeting at the Presidential Villa, urged the Federal Ministry of Finance and other relevant government agencies to fast-track enforcement.
According to him, the decision was not “an anti-trade policy but a pro-value addition policy designed to secure raw materials for our processing factories and enabling industries run at full capacity, thereby boosting rural income and jobs for our people.”
Shettima revealed that the decision “will transform Nigeria from an exporter of raw shea nut to a global supplier of refined shea butter, oil and other derivatives.”
On employment opportunities and income generation, Shettima disclosed, “Nigeria produces nearly 40% of the global shea product, yet we account for only 1% of the market share of $6.5 billion.
This is unacceptable. We are projected to earn about $300 million annually in the short term, and by 2027, there will be a 10-fold increase. This is our target.”
He further noted that the ban was a collective decision that involved the sub-nationals and the Federal Government, with the sole intention of transforming the country’s economy.
Shettima concluded by saying that the move is meant to close doors, but instead it will open new opportunities.
“Government is not closing doors; we are opening opportunities. Mr President is currently in Brazil, and both countries have agreed to prioritise access for Nigerian shea butter and oil into the Brazilian market. This process will be completed within the next 3 months.
We are not closing doors, we are opening better ones. Today, we plant the seeds of an industry that will yield fruit for decades to come for our women, for our economy, and for Nigeria’s place in global trade,” he added.
