KEY POINTS

• Shea nut export ban extended until February 25, 2027.
• Government aims to boost local processing and value addition.
• Shea prices fell about one-third after earlier moratorium.

The Federal Government has extended the Shea nut export ban for another year, reinforcing efforts to curb raw commodity shipments and expand domestic processing capacity.

The extension, which runs from February 26, 2026, to February 25, 2027, was approved by President Bola Tinubu as part of a strategy to shift the industry toward higher-value production.

Officials say Nigeria aims to move from exporting largely unprocessed shea nuts to producing shea butter and related derivatives that can command prices up to 20 times higher.

Shea Nut Export Ban Extended

In approving the Shea nut export ban extension, Tinubu said the measure would deepen processing capacity, improve livelihoods in shea-producing communities and anchor export growth on value-added products.

Special Adviser on Information and Strategy Bayo Onanuga said the decision aligns with the administration’s industrialisation goals under the Renewed Hope Agenda.

“The decision underscores the administration’s commitment to advancing industrial development, strengthening domestic value addition, and supporting the objectives of the Renewed Hope Agenda,” he said.

Nigeria is one of West Africa’s major shea producers, with production dominated by smallholders and women in rural communities across central states.

Price Slump and Trade Impact

The policy follows an earlier moratorium announced in August, when Nigeria joined other West African producers in restricting shipments. Since then, shea nut prices have fallen by about a third, trading at roughly 850 naira (63 US cents) per kilogram at the end of the December harvest season, according to Lagos-based commodities exchange AFEX.

Industry participants say the ban has disrupted supply chains. The National Shea Products Association of Nigeria said intermediaries who transport nuts from smallholders to markets have exited the trade, leading to lost contracts.

The Shea nut export ban extension seeks to reposition Nigeria within the global shea value chain, but its impact on rural incomes and market dynamics remains under scrutiny as implementation continues.