Federal Government Defends Raw Shea Nut Export Restriction, Targets Global Processing Leadership

Federal Government Defends Raw Shea Nut Export Restriction, Targets Global Processing Leadership The Federal Government has reaffirmed its decision to restrict the export of raw shea nuts, describing the policy as a strategic move aimed at boosting domestic processing, creating jobs, and retaining more value within Nigeria’s economy. Speaking at the 18th Global Shea Alliance Conference in Accra, John Owan Enoh said the policy is part of a broader industrialisation agenda designed to transform Nigeria from a supplier of raw materials into a major global processing hub for shea products. According to the minister, the restriction on raw shea nut exports was introduced to encourage local investment in processing facilities and ensure that a greater share of the industry’s value chain remains within the country. He noted that exporting raw agricultural commodities often deprives producing nations of opportunities for industrial growth, employment generation, and increased export earnings. The government believes that processing shea nuts locally into butter and other value-added products will strengthen Nigeria’s position in international markets while creating sustainable economic opportunities for communities involved in the sector. Enoh stated that the policy shift, first implemented in 2025 and extended in 2026, is already producing positive outcomes. According to him, local processing capacity has expanded, investor interest has increased, and stakeholders across the value chain are beginning to benefit from greater domestic participation in production and export activities. He emphasized that the government remains committed to supporting processors through policies that encourage investment, innovation, and market access. Nigeria is one of Africa’s leading producers of shea nuts, a key raw material used in the manufacture of cosmetics, pharmaceuticals, food products, and personal care items worldwide. The government’s long-term objective is to position Nigeria as a major centre for shea processing and export of finished products rather than raw commodities. Officials believe that strengthening local processing will improve export revenues, support rural livelihoods, and enhance the country’s competitiveness in global value chains. Stakeholders at the conference welcomed discussions on value addition and industrial development, noting that increased local processing could help African producers capture a larger share of the global shea market. The Federal Government reiterated that policies supporting domestic manufacturing and agro-processing remain central to its broader economic diversification strategy.