Nigeria’s shea industry is at a critical turning point as stakeholders push for deeper structural reforms to unlock value from one of the country’s most underutilised agricultural assets.
Following the Federal Government’s decision to extend the ban on raw shea nut exports for another year, industry leaders say policy enforcement must now move beyond restrictions to systemic regulation that protects grassroots actors and strengthens domestic processing capacity.
Shea stakeholders urge FG to license buyers, protect pickers
Shea stakeholders urge FG to license buyers, protect pickers, arguing that without a transparent and enforceable licensing framework, the renewed export ban may fail to deliver meaningful value addition.
President Bola Tinubu approved the extension of the ban on raw shea nut exports from February 26, 2026, to February 25, 2027. The directive also mandates adoption of the export framework of the Nigerian Commodity Exchange (NCX) and withdraws previous waivers that allowed direct export of unprocessed nuts.
Nigeria accounts for approximately 350,000 metric tonnes of shea nut production annually—about 40 per cent of global supply—yet captures less than one per cent of the estimated $6.5 billion global shea products market.
Industry analysts say the disconnect lies in limited domestic processing, weak quality control systems and informal farmgate transactions.
Licensing as the missing link
The Director of Sustainability and Climate Adaptation at the National Shea Products Association of Nigeria (NASPAN), Elizabeth Nwankwo, said licensing should serve as the operational backbone of the reform.
She maintained that shea stakeholders urge FG to license buyers, protect pickers by ensuring only certified agents are authorised to purchase nuts directly from communities.
According to her, unregulated buying at the farmgate level has historically triggered quality deterioration, exploitative pricing practices, smuggling and traceability challenges. In many producing states, middlemen operate without oversight, distorting prices and weakening the earnings of rural women who dominate primary collection.
Nwankwo proposed that Licensed Buying Agents must be registered with NASPAN, undergo mandatory training on grading standards, storage methods and ethical pricing, and comply with minimum quality benchmarks.
“Direct farmgate purchases by unlicensed individuals or foreign entities should be prohibited,” she said, emphasising that regulatory clarity will strengthen compliance and improve Nigeria’s export reputation.
Over 90 per cent of shea nut collectors are women in rural communities across Nigeria’s Middle Belt and northern regions. Stakeholders argue that reform must prioritise their protection through structured cooperative systems and transparent pricing mechanisms.
Shea stakeholders urge FG to license buyers, protect pickers in order to eliminate arbitrary deductions, under-weighing practices and speculative hoarding that often erode farmgate income.
By linking licensing to mandatory engagement with registered women cooperatives, the government could formalise transactions, enhance income predictability and improve data capture for policy planning.
Industry observers note that traceability is becoming increasingly important in global supply chains, particularly in cosmetics and food manufacturing sectors where sustainability certifications influence purchasing decisions.
Standardisation and grading critical
The President of the Nigeria Agribusiness Group (NABG), Kabir Ibrahim, welcomed the extension of the export ban, describing value addition as central to long-term agribusiness success.
However, he stressed that quality standardisation must accompany processing expansion. Without uniform grading protocols, Nigeria risks losing premium market positioning even if domestic crushing capacity improves.
He also suggested certification of shea products as Halal-compliant to access the growing $7.7 trillion global Halal investment market, noting that structured compliance frameworks could significantly expand export destinations.
Shea stakeholders urge FG to license buyers, protect pickers while simultaneously investing in grading laboratories, quality verification centres and storage infrastructure to prevent post-harvest losses.
Role of the commodity exchange
The directive requiring excess raw shea nuts to be exported exclusively through the NCX framework has been widely described as a step toward formalisation.
By routing exports through a nationally accredited commodity exchange, authorities aim to strengthen transparency, improve price discovery and enhance government revenue tracking.
Stakeholders argue that a properly implemented exchange framework could reduce informal cross-border trade and curb smuggling, which has historically undermined local processors by diverting raw materials.
However, implementation consistency remains a concern.
Investors demand policy stability
The Chairman of the Agricultural and Allied Group of the Lagos Chamber of Commerce and Industry (LCCI), Tunde Banjoko, supported the intent behind the ban but warned against policy inconsistency.
He noted that investors considering processing facilities require long-term certainty to justify capital expenditure on crushing plants, refining lines and packaging operations.
Shea stakeholders urge FG to license buyers, protect pickers in a predictable regulatory environment where sudden reversals do not undermine investor confidence.
According to industry insiders, previous policy shifts in commodity export regulation have created hesitation among foreign and local investors. Clear timelines, enforcement transparency and stakeholder engagement will therefore be crucial to sustaining momentum.
If effectively implemented, stakeholders believe the reform could significantly improve Nigeria’s share of the global shea value chain.
Processing shea nuts domestically into butter and derivative products—used in cosmetics, pharmaceuticals and food manufacturing—generates higher margins and employment opportunities than raw exports.
By formalising procurement, strengthening quality control and expanding processing capacity, Nigeria could reposition itself from a bulk supplier of raw material to a competitive exporter of finished or semi-finished products.
Ultimately, shea stakeholders urge FG to license buyers, protect pickers not merely as a compliance exercise, but as a strategy for inclusive industrialisation.
As the one-year extension of the export ban takes effect, the focus now shifts from policy announcement to enforcement architecture.
For rural women, processors and exporters alike, the success of this initiative may determine whether Nigeria finally captures meaningful value from one of its most abundant natural resources.
