Kate Roland

Industry stakeholders have raised alarm over potential disruptions in the shea value chain following the Federal Government’s sudden decision to suspend the exportation of raw shea nuts. The temporary ban, which took effect on August 26, 2025, is aimed at encouraging domestic value addition, reducing smuggling, and stimulating economic activity in rural communities.

The National Association of Shea Products of Nigeria (NASPAN) has voiced both support and concern regarding the policy, describing it as a step in the right direction, but cautioning that its abrupt implementation could result in widespread economic losses.

Speaking at a media briefing in Abuja on Friday, NASPAN President, Mohammed Kontagora, acknowledged the long-term benefits of the move, particularly in positioning Nigeria as a global leader in the shea industry. Nigeria currently hosts nearly 58% of the world’s shea tree population—a strategic advantage the government hopes to leverage to boost local production and processing.

However, Kontagora noted that many aggregators and exporters were blindsided by the policy shift, with large volumes of raw shea nuts—valued in billions of naira—now stranded in warehouses across the country.

“While members appreciate the benefits and prospects of this pronouncement, the sudden announcement of the policy has created serious dislocations for aggregators,” he said.

In response, NASPAN is urging the government to introduce a 90-day transition window to allow exporters to fulfill existing international contracts made prior to the ban. Kontagora stressed that traders who can provide evidence of legally binding agreements should be permitted to complete those transactions under a regulated framework.

Despite these short-term challenges, the association maintains that the ban could usher in a transformative era for Nigeria’s shea industry. Estimates suggest that if properly managed, the move could generate upwards of $300 million annually through increased local processing and export of refined products.

To ensure the policy’s success, NASPAN has proposed a series of measures, including:

  • Establishment of a Shea Marketing Board to coordinate pricing, market regulation, and support for processors;
  • Provision of grants and incentives to boost the capacity of local shea processors;
  • Strengthening of border control mechanisms to curb smuggling;
  • Passage of the National Council on Shea Bill, which aims to provide a legal and institutional framework for the industry;
  • Integration of shea farming into climate and sustainability programs to promote environmental stewardship and long-term viability.

As the federal government pushes forward with its industrialization agenda, the unfolding developments in the shea sector will likely serve as a bellwether for how well Nigeria can balance economic reforms with the realities of rural livelihoods and global trade obligations.