
FG halts raw shea exports to strengthen global competitiveness
Nigeria has taken a bold step to reposition itself as a global leader in the shea industry, with the Federal Government announcing a temporary suspension of raw shea exports.

The decision, championed by President Bola Tinubu, is designed to encourage local processing, boost value addition, and strengthen Nigeria’s competitiveness in the global market.
The announcement was disclosed by the Minister of Information and National Orientation, Mohammed Idris, during the 20th Institute of Chartered Accountants of Nigeria (ICAN) Northern Zonal Accountants’ Conference in Minna.
Represented by the Director-General of the Voice of Nigeria, Mallam Jibrin Baba Ndace, Idris described the policy as a “bold and forward-looking measure” that will transform the nation’s role in the international shea value chain.
Nigeria currently produces more than half of the world’s shea output, yet much of this is exported in raw form, denying the country significant revenue and employment opportunities.
The suspension, according to Idris, will change this narrative by prioritising local processing.
“By insisting that more of our shea be processed locally, the president is ensuring that Nigeria does not remain a supplier of raw materials but becomes a global leader in high-value shea products,” Idris said.
He noted that the policy would not only create jobs but also attract investment, accelerate technology transfer, and increase foreign exchange earnings.
Women and young people in rural communities, who dominate shea collection and processing, are expected to be among the biggest beneficiaries.
Niger State, widely regarded as the hub of Nigeria’s shea belt, is projected to gain significantly from the policy shift.
With thousands of women farmers engaged in shea harvesting, the ban on raw exports is expected to spur the establishment of modern processing plants in the state.
“This decisive step will stimulate local investment, drive technology transfer, and accelerate the development of processing capacity,” Idris added.
The Federal Government also commended the National Shea Products Association of Nigeria for supporting the new policy direction, while assuring industry stakeholders that it would provide the enabling environment for growth.
The suspension forms part of the Tinubu administration’s Renewed Hope Agenda, which emphasizes economic renewal, inclusivity, and accountability.
According to Idris, the move is consistent with the government’s broader strategy to promote value addition across agricultural value chains and reduce Nigeria’s overdependence on raw commodity exports.
He also highlighted that accountability and national reorientation remain central to unlocking Nigeria’s economic potential.
“Power in health or agriculture is not just an infrastructure issue; it’s a matter of life, dignity, and hope,” he said, stressing that all stakeholders must put Nigeria first.
Industry experts estimate that the shea sector, if fully harnessed, could generate more than $300 million annually for Nigeria in the short term.
Vice President Kashim Shettima, who announced the directive at a multi-stakeholder forum in Abuja last month, explained that the six-month suspension aims to support local processors, curb informal trade, and reposition Nigeria for stronger participation in the international shea butter market.
Analysts believe the policy will encourage foreign and local investors to establish value-adding facilities, particularly in states along Nigeria’s shea belt such as Niger, Kwara, Oyo, and Kogi.
In addition to agricultural reforms, Idris cited infrastructure expansion, digital transformation, and fiscal discipline as key priorities under the Renewed Hope Agenda.

He referenced ongoing mega projects such as the Lagos–Calabar Coastal Superhighway, the Badagry–Sokoto Superhighway, and the rehabilitation of the Eastern rail corridor as proof of the government’s commitment to equitable development.
He also pointed to Nigeria’s slight improvement on the Transparency International Corruption Perceptions Index — moving from 145th in 2023 to 140th in 2024 — as evidence of progress in governance and fiscal accountability.
Stakeholders in the shea industry have largely welcomed the decision.
The National Shea Products Association of Nigeria said the suspension would help unlock the country’s true potential in the global market.
However, some exporters expressed concerns about the capacity of local processors to absorb the volume of shea produced annually.
Experts have advised the government to pair the suspension with incentives such as tax breaks, soft loans, and technical support to local processors, ensuring the policy does not create a bottleneck for farmers.
With Nigeria accounting for over 50% of global shea production, the suspension of raw exports is a significant step toward transforming the country from a raw material exporter into a global powerhouse in value-added shea products.
If effectively implemented, the initiative could generate billions in revenue, create jobs for rural communities, and establish Nigeria as a leading player in the international cosmetics and food industries.