Nigeria Suspends Raw Shea Exports to Capture $6.5bn Global Market and Empower Women Farmers

Follow

( 0 Followers )

X

Follow

E-mail : *

Follow Unfollow

Nigeria has taken a decisive step to reposition itself in the global agricultural value chain as President Bola Ahmed Tinubu announced a six-month suspension of raw shea exports. The move, according to the presidency, is aimed at ending the country’s decades-long paradox of being the world’s largest producer of shea nuts while earning less than one percent of the $6.5 billion global shea market.

Despite producing nearly 40 percent of global supply, Nigeria has for years exported most of its shea in raw form to be processed abroad into butter, cosmetics, pharmaceuticals, and other high-value products. This policy, President Tinubu explained, is designed to reverse that imbalance by ensuring that value addition happens within Nigeria, creating jobs, boosting exports, and raising incomes for farmers and processors. He emphasized that under his administration’s Renewed Hope Agenda, Nigeria will no longer export poverty and import value but will instead create industries at home and compete globally.

The policy is expected to have its greatest impact on women, who dominate the shea picking sector. Over 95 percent of shea collectors in Nigeria are women, often from rural communities, who have historically earned very little while foreign processors captured the lion’s share of profits. By retaining the raw product and expanding processing capacity within the country, the government hopes to transform shea into what it calls “women’s gold,” a resource that can drive rural empowerment and reduce poverty.

Nigeria’s competitors in the shea sector offer a clear picture of what is possible. Ghana, which contributes only about 16 percent of global supply, has built an organized industry of cooperatives and local processors that capture significant export value. Burkina Faso, with barely eight percent of production, has carved out a profitable niche in certified organic and fair-trade shea butter, securing lucrative markets in Europe. In contrast, Nigeria, despite its dominance in supply, has lagged behind due to a weak processing base and an overreliance on raw exports.

Experts believe the suspension could mark a turning point. Trade analysts estimate that if Nigeria were to process just half of its shea locally, export earnings could rise from the current $50–70 million annually to more than $1.5 billion, while creating hundreds of thousands of new jobs in farming, processing, logistics, and exports. For rural women, incomes could increase several fold, with ripple effects for education, health, and community development.

Yet challenges remain. Nigeria’s industrial capacity is constrained by inadequate infrastructure, unreliable electricity, and limited access to affordable financing. Local processors warn that if factories are not quickly supported to absorb the glut of shea nuts that will no longer be exported raw, farmers may suffer short-term losses. Industry stakeholders are therefore urging the government to match policy ambition with practical support, from concessional loans to improved transport systems and quality control frameworks that meet international standards.

Despite these hurdles, optimism remains high. With new market opportunities emerging in Brazil and continued global demand for natural and organic products, Nigeria is well placed to claim a much larger share of the international shea economy. President Tinubu insists that the reform is not just about trade but about dignity and fairness, ensuring that the people who toil to harvest shea are the ones who benefit from its wealth.

If effectively implemented, this suspension of raw shea exports could transform one of Nigeria’s most overlooked resources into a billion-dollar industry. It represents a broader shift in the government’s strategy to move away from raw commodity exports and toward industrialization, setting a precedent for how Africa’s largest economy can harness its agricultural potential for inclusive and sustainable growth.