President Tinubu Enforces Temporary Export Suspension on Raw Shea Nuts
In a strategic move to enhance Nigeria’s shea industry, President Bola Ahmed Tinubu has sanctioned a six-month embargo on the exportation of raw shea nuts. This policy, announced by Vice President Kashim Shettima during a comprehensive stakeholder forum in Abuja, is designed to invigorate the domestic shea processing sector and elevate the country’s position in the global market.
Boosting Domestic Processing and Economic Growth
The export ban is intended not as a restriction on trade but as a catalyst for value addition within Nigeria’s shea industry. Vice President Shettima emphasized that the initiative aims to ensure local factories receive sufficient raw materials to operate at full capacity, thereby creating employment opportunities and stimulating economic development. Despite Nigeria producing approximately 40% of the world’s shea nuts, it currently captures a mere 1% share of the $6.5 billion global shea market-a disparity the government is determined to rectify.
Transforming Nigeria into a Global Shea Butter Hub
This policy is part of a broader vision to position Nigeria as a leading exporter of refined shea butter, oils, and related products. The government anticipates that this shift will not only accelerate industrialization but also foster rural development, empower women-who constitute a significant portion of the shea value chain-and expand international trade partnerships. By 2027, the administration aims to increase Nigeria’s shea export revenues tenfold.
International Collaboration and Market Expansion
To facilitate rapid market access, Nigeria has entered into agreements with Brazil, targeting the introduction of Nigerian shea products into Brazilian markets within three months. This collaboration exemplifies Nigeria’s commitment to diversifying its export destinations and enhancing the global footprint of its shea industry.
Current Production Capacity and Industry Challenges
Senator Abubakar Kyari, Minister of Agriculture and Food Security, acknowledged that while Nigeria produces an estimated 350,000 metric tonnes of shea nuts annually across 30 states-with the potential to scale up to 900,000 tonnes-the country’s processing facilities are underutilized, operating at only 35 to 50 percent capacity. This underperformance underscores the urgent need for policies that stimulate domestic processing and maximize the sector’s economic potential.
Looking Ahead: Opportunities for Growth and Sustainability
With global demand for natural and sustainable products on the rise, Nigeria’s shea industry stands at a pivotal juncture. By focusing on value addition and strengthening local processing capabilities, the country is poised to capture a larger share of the lucrative international market, improve livelihoods in rural communities, and contribute significantly to national economic diversification efforts.
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