Nigeria deepens its raw shea export ban and shifts policy toward domestic processing
Nigeria has extended its raw shea export ban as it tries to move more value into domestic processing, jobs and higher-margin agri-exports.
Nigeria is hardening its policy against raw shea exports and pushing the sector toward domestic processing. The Punch reported on April 28 after the country’s presentation at the Shea 2026: Beyond Borders conference in Accra. Nigerian officials said the era of exporting raw nuts and importing finished products must end, and that future growth should come from industrial processing, job creation and deeper participation in the global shea value chain.
The policy began in August 2025 with an initial six-month ban on raw shea nut exports. On February 26, 2026, President Bola Tinubu extended that restriction for another year, through the end of February 2027. Under the extended arrangement, all shea exports must move through the Nigeria Commodity Exchange framework and previous exemptions for direct raw-nut shipments have been removed. The aim is to force more raw material into domestic processing plants rather than overseas buyers.
The economic case is substantial. According to the report, Nigeria produces between 350,000 and 500,000 tonnes of shea nuts a year, close to 40% of global supply. Yet it captures only about 1% of the 6.5 billion dollar global shea market because most output is exported in raw form. Processed shea butter, used in cosmetics, food and pharmaceuticals, sells for 10 to 20 times the price of raw nuts. The government says it wants to raise processed shea earnings from about 65 million dollars now to 300 million dollars in the near term, with potential growth to 3 billion dollars by 2027.
The shift is not cost-free. After the initial ban, domestic raw shea prices reportedly fell 33% within three days, creating a sharp shock for rural collectors and other small market participants who depend on those sales for income. Another problem is industrial capacity. Nigeria’s processing capacity is estimated at around 160,000 tonnes, but only 35% to 50% of that is currently utilized because of unreliable power, weak infrastructure, inadequate technology and limited access to finance.
The shea policy also has a strong rural and social dimension. The report says women accounted for roughly 95% of the shea collection and initial processing workforce as of early 2025. Nigerian officials link the protection of shea parklands to climate resilience, afforestation and women’s livelihoods. The country is not acting alone: Burkina Faso, Mali, Côte d’Ivoire, Togo and Ghana have also imposed or prepared restrictions on raw shea exports. That means West Africa is increasingly trying to keep more value inside its own agricultural processing chain instead of leaving the main margins to refiners and manufacturers in Europe and Asia.