Nigeria Bans Raw Shea Nut Exports to Boost Local Industry, Eyes $3 Billion Future Market

Abuja, August 29, 2025 —

In a bold step aimed at transforming Nigeria’s place in the global shea industry, the Federal Government has announced a six-month ban on the export of raw shea nuts. The move, officials say, is designed to redirect raw materials to local processors, spur industrial growth, and position the country for a greater share of the booming global shea products market.

Nigeria, which currently supplies about 40% of the world’s raw shea nuts, accounts for only 1% of the $6.5 billion global shea value chain. By restricting raw exports, the government expects to significantly scale up domestic refining and processing of shea butter, cosmetics, and food ingredients derived from the nut.

According to projections, the ban could generate $300 million in the short term and expand to $3 billion by 2027 ifNigeria successfully harnesses the value-added opportunities.

The Minister of Trade and Investment, in a briefing at Abuja, emphasized that the policy will “create jobs, encourage investment, and keep more value within the Nigerian economy.”

Industry experts say the move could unlock new prospects for smallholder farmers, cooperatives, and entrepreneurs, provided infrastructure, financing, and modern processing facilities are put in place.

Analysts, however, caution that enforcement and support for local processors will be key. Without effective monitoring, smugglers could exploit border loopholes, while inadequate incentives might discourage compliance.

With shea butter, widely used in cosmetics, pharmaceuticals, and food products, Nigeria’s decision signals a shift towards future-focused industrialization—moving from a raw material exporter to a global supplier of high-value products.