How can Nigeria’s shea nut export ban boost jobs, reshape logistics?

“Nigeria produces nearly 40% of the global shea product, yet we account for only 1% of the market share of $6.5 billion," said Kashim Shettima, Vice President of Nigeria. Shettima also mentioned that is unacceptable. And, that is why Nigeria has implemented a six-month temporary ban on the export of raw shea nuts. But, the question now is how can this export ban boost the Nigerian economy, increase job creation and reshape logistics?

The VP added, "Government is not closing doors; we are opening opportunities."

The ban, which is with immediate effect, is subject to review on expiration and specifically aimed at boosting Nigeria’s shea value chain to generate around $300 million annually in the short term. Vice President Kashim Shettima, who announced the president’s directive on Tuesday during a multi-stakeholder meeting at the Presidential Villa, called on the Federal Ministry of Finance and other relevant government agencies to fast-track enforcement.

Speaking further on the directive, the Vice President said the decision was not “an anti-trade policy but a pro-value addition policy designed to secure raw materials for our processing factories and enabling industries run at full capacity thereby boosting rural income and jobs for our people.”

He added that the decision “will transform Nigeria from an exporter of raw shea nut to a global supplier of refined shea butter, oil and other derivatives,” just as he said it is about industrialisation, rural transformation, gender empowerment and expanding Nigeria’s global trade footprint.”

On revenue prospects, Shettima noted, “We are projected to earn about $300 million annually in the short term, and by 2027, there will be a 10-fold increase. This is our target.”

Earlier, the Minister of Agriculture and Food Security of Nigeria, Senator Abubakar Kyari, highlighted how the directive addresses longstanding inefficiencies. He noted that “Nigeria produces an estimated 350,000 metric tonnes of shea annually across 30 states, with the potential to reach nearly 900,000 metric tonnes. Yet our share of the 6.5-billion-dollar global market is less than one percent.”

Kyari pointed out that despite a national installed processing capacity of 160,000 metric tonnes, “processors operate at only 35% to 50% capacity,” largely because more than 90,000 metric tonnes of raw shea are lost annually to informal cross-border trade. He added that while “regional neighbours such as Ghana, Burkina Faso, Mali, and Togo have already imposed restrictions to protect their industries,” Nigeria had remained “the outlier and a hotspot for opportunistic and unregulated buying.”

On long-term prospects, the Minister said, “The shea sector could generate more than 300 million dollars annually in the short term and position Nigeria to capture a significant share of the projected 9-billion-dollar global market by 2030. Shea is one of the few commodities where our country holds both a comparative and absolute advantage. With over five million hectares of wild-growing shea trees, Nigeria has the natural endowment to dominate not only in production but also in value-added processing.”

The logistics and supply chain implications of the ban are expected to be significant. With raw exports restricted, the flow of shea nuts is likely to shift from informal cross-border channels toward local processing facilities. This could increase demand for domestic storage, transport, and warehousing services while reducing leakages from unregulated trade. In turn, processors running at higher capacity may create stronger demand for packaging, cold chain, and export logistics for refined shea butter and oils, positioning Nigeria to expand its footprint in international markets.

The gender and rural development dimension is also critical. As Senator Kyari emphasised, 90% of pickers and processors are women, meaning that securing raw material supply for domestic industries is expected to directly support women’s empowerment, rural income growth, and long-term economic stability.

Kyari also mentioned, “The reasons for this presidential directive are clear. Without corrective action, Nigeria risked becoming a raw depot for opportunistic and illicit buyers, undermining our processors’ capacities, disempowering rural women, and forfeiting billions in potential export revenues. The benefits of the temporary ban are equally compelling. It will secure domestic supply, enable processors to operate at full capacity, curb informal trade, and lay the foundation for Nigeria to transition from exporting raw kernels to exporting high-value derivatives such as butter, olein, and stearin.”

With the ban in place, Nigeria is aiming not only to safeguard raw materials but also to restructure its value chain, generate employment, and transform logistics flows to serve a stronger processing-led shea economy. And, this idea is not getting attention of the business people around Africa but also getting embraced. For instance, the President of Dangote Industries Limited, Aliko Dangote mentioned Africa should prioritise manufacturing and industrialisation over exporting raw materials. Speaking at the 4th Intra-African Trade Fair in Algiers, he stressed the need for regional value chains, deeper intra-African trade, and policies that drive private sector investment.

Dangote also mentioned his group’s contributions, including cement production capacity of 52 million metric tonnes per annum across 10 countries, a 3 million metric tonnes per annum urea plant making Nigeria a net fertiliser exporter, and Africa’s largest oil refinery with a capacity of 650,000 barrels per day. He said such projects reduce import dependence and strengthen resilience, urging African nations to adopt reforms and infrastructure investment to unlock their economic potential.

In a different context, while speaking at Intra-African Trade Fair in Algeria, the upcoming President of the African Export-Import Bank, George Elombi highlighted the need for processing raw materials locally in Africa.