The National Association of Shea Products of Nigeria (NASPAN) has appealed to the Federal Government to grant a 90-day grace window for exporters and aggregators of raw shea nuts to complete existing international contracts, following the recent ban on raw shea exports.
The Federal Government had, on August 26, 2025, announced a temporary ban on the exportation of raw shea nuts.
According to government officials, the policy was designed to encourage local processing, boost value addition, create jobs, and curb smuggling in the $3.6 billion global shea industry.
While industry players largely welcomed the decision as a game changer for Nigeria’s agro-industrial growth, NASPAN warned that the sudden implementation could trigger massive financial losses, contract defaults, and wastage of raw nuts worth billions of naira.
Speaking in Abuja on Friday, NASPAN President, Mohammed Kontagora, said the government’s intention was laudable but argued that the abrupt policy rollout left traders, exporters, and aggregators stranded with contracts signed months before the ban.
“While members appreciate the benefits and prospects of this pronouncement, the sudden announcement of the policy has created serious dislocations for aggregators.
Many are holding huge stocks worth billions of naira, and without an adjustment window, these products may waste or result in international contract breaches,” Kontagora said.
He explained that many Nigerian exporters had signed legally binding contracts with international buyers long before the ban was introduced.
To avert losses and litigation, NASPAN is requesting that such exporters be allowed to complete shipments within a 90-day grace period under a regulated framework.
Nigeria holds a competitive edge in the global shea industry.
According to NASPAN, the country accounts for about 58 percent of the world’s shea trees, making it the largest producer globally.
However, despite this natural advantage, Nigeria lags behind West African neighbours such as Ghana and Burkina Faso in terms of processing and export of finished shea products.
By banning raw exports, the government hopes to reposition Nigeria as a global leader in shea competitiveness, driving the export of shea butter, cosmetics, and related products rather than unprocessed nuts.
Industry experts estimate that the policy, if properly implemented, could generate over $300 million annually in the short term and create thousands of rural jobs, especially for women who dominate shea nut collection and processing.
To ensure that the ban achieves its objectives without crippling stakeholders, NASPAN has presented a series of proposals.
Creation of a Shea Marketing Board: to regulate pricing, stabilize the market, and support domestic processors.
Grants and Incentives for Local Processors: to increase production capacity and prevent shortages of finished shea products.
Passage of the National Council on Shea Bill: to establish a formal framework for industry development.
Enhanced Border Policing: to curb smuggling of raw shea nuts, which undermines local industries.
Integration into Climate Management Programs: to align the shea value chain with sustainable agricultural and environmental practices.
Kontagora emphasized that the success of the ban will depend on collaboration between government agencies, industry players, and local communities.
The export ban has generated mixed reactions across the agricultural and trade sectors.
The Nigerian Export-Import Bank (NEXIM) earlier expressed support for the policy, stating that it would strengthen local value chains and reduce capital flight.
Similarly, Kwara State Government announced plans to establish a 50-tonne shea processing plant, describing the policy as timely for rural empowerment.
However, traders and aggregators are worried about short-term disruptions.
Exporters warn that without a transition period, Nigeria risks damaging its reputation in the international market.
“We could be seen as unreliable suppliers if we fail to honour existing contracts,” one trader told reporters.
The shea industry sustains over 500,000 rural women in Nigeria who collect and process nuts.
Industry watchers fear that without immediate alternatives, the ban could temporarily reduce income for these rural households.
NASPAN is therefore calling for government-backed interventions such as micro-credit schemes, training for women cooperatives, and access to processing equipment to cushion the effects of the policy.
The Federal Government has yet to officially respond to NASPAN’s appeal for a 90-day grace period.
Analysts suggest that a middle ground, allowing current contracts to be executed while ramping up domestic processing, may prevent large-scale losses while keeping the long-term objectives of the ban intact.
As Nigeria looks to diversify its economy beyond oil, policies like the shea export ban highlight the delicate balance between promoting industrial growth and protecting traders who rely on established global markets.
For now, stakeholders await clarity on whether the government will yield to NASPAN’s request, a decision that could determine whether the policy becomes a driver of growth or a source of crisis in the shea industry.