Nigeria’s Shea Nut Market Surges Post-Export Ban

News in Brief:

-Prices of shea nuts have surged above ₦1,000 per kilogram following the Federal Government’s ban on raw exports. -The policy has revived local processing industries, improved women’s income, and positioned Nigeria to gain a stronger share of the $6.5 billion global shea market.

Nigeria’s shea nut industry is witnessing a strong revival after the Federal Government decided to ban the export of raw shea nuts earlier this year. The policy, which initially caused panic and price drops, has now stabilised the market and encouraged a surge in local processing, according to analysts.

Before the ban, a kilogram of shea nuts sold for around ₦850. Prices dipped to as low as ₦570 per kilogram when the restriction took effect, as traders scrambled to adjust.

Recent demand from local processors has triggered a rebound, reports claim. By mid-September, prices climbed back to between ₦710 and ₦800, and in early October, the average price had risen to about ₦1,000 per kilogram, roughly 18 per cent higher than pre-ban levels.

Policy Shift Revives Factories and Boosts Jobs

Industry observers say this turnaround reflects renewed confidence in President Bola Ahmed Tinubu’s Nigeria First Economic Policy, which prioritises domestic value addition over raw exports.

Despite producing more than one-third of the world’s shea nuts, Nigeria has historically earned less than one per cent of the global $6.5 billion shea market. This was largely because most nuts were exported raw instead of being processed into higher-value products like shea butter and cosmetics.

A report by The News Chronicle noted that many of Nigeria’s 20-plus shea processing factories, which had previously operated below 30 per cent capacity, are now bouncing back. These revived factories are not only preserving jobs but also strengthening linkages across the shea value chain from rural women collectors to industrial processors.

Women and Rural Communities Benefit

Shea nut collection in Nigeria is largely dominated by women-led cooperatives, particularly in states such as Niger, Kwara, Kebbi, and Oyo. With the export ban in place, these cooperatives are earning higher incomes from better local demand and stable pricing.

“This policy has created a fairer market for rural women who depend on shea nuts for their livelihoods,” said an industry representative from the Nigeria Agribusiness Group. “Before now, most of the profit was lost to export middlemen. Local processing ensures that more value remains within our communities.”

Towards a Value-Driven Shea Economy

The reform also aligns with Nigeria’s 30 per cent Value Addition Bill, which was endorsed by the Senate in July 2025 and is currently awaiting approval from the House of Representatives. Once passed, the law will prohibit the export of any Nigerian raw material without at least 30 per cent local processing.

The initiative, championed by the Raw Materials Research and Development Council (RMRDC), is part of a broader effort to build an export-driven but self-reliant economy. The Federal Ministry of Industry, Trade and Investment, in collaboration with the Presidential Food Systems Coordinating Unit (PFSCU), is conducting national assessments in the five top shea-producing states to ensure smooth policy rollout and long-term market growth.

A Step Towards Self-Sufficiency

For Nigeria’s growing shea sector, this marks a defining moment. By focusing on local value addition and strengthening its processing base, the country is not only securing better returns for farmers and processors but also building resilience into its agricultural export system.

If sustained, this policy could help Nigeria move from being a raw-material supplier to a global leader in high-quality shea products, creating jobs, empowering rural women, and boosting foreign exchange earnings.