In order to reduce illicit trade, encourage domestic processing, safeguard and expand Nigeria’s shea industry, President Bola Tinubu has authorized a six-month temporary ban on the export of raw sheanuts.
At a multi-stakeholder meeting held at the Presidential Villa in Abuja, Vice-President Kashim Shettima made the announcement of the president’s directive.
According to the News Agency of Nigeria (NAN), the prohibition, which is in place immediately, will be reviewed when it expires.
Its short-term goal is to increase Nigeria’s shea value chain’s yearly production to over $300 million.
Shettima clarified that the prohibition was the result of a collaborative decision between the federal government and the subnationals, with explicit guidelines for economic reform in the country’s best interests.
As a result, he urged the Federal Ministry of Finance and other pertinent government organizations to expedite enforcement.
According to the vice president, the decision represents a pro-value addition strategy aimed at securing raw materials for processing industries rather than “an anti-trade policy.”
He went on to say that the decision would allow industries to operate at full capacity, increasing rural income and employment opportunities for our people.
”The decision will transform Nigeria from an exporter of raw shea nut to a global supplier of refined shea butter, oil and other derivatives,” he said.
According to Shettima, it was about empowering women, industrialization, rural change, and growing Nigeria’s international economic presence.
Regarding prospects for generating cash and jobs, the vice president stated, “Nigeria produces approximately 40% of the world’s shea product.”
”Yet, we account for only 1% of the market share of 6.5 billion dollars.
“This is unacceptable. 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.”
According to him, the administration was creating possibilities rather than closing doors.
”Mr President is currently in Brazil, and both countries have agreed to prioritize access for Nigerian shea butter and oil into the Brazilian market.
”This process will be completed within the next 3 months,” the vice-president added.
He highlighted the gender dimension of the policy, adding, “by protecting the shea industry, we are protecting livelihoods, dignity and opportunity for millions of our women.
“We are not closing doors, we are opening better ones.
“Today, we plant the seeds of an industry that will yield fruit for decades to come for our women, for our economy, and for Nigeria’s place in global trade.”
Nigeria is the world’s greatest producer of sheanuts, accounting for over 40% of the global supply, according to Sen. Abubakar Kyari, Minister of Agriculture and Food Security.
But according to him, Nigeria only accounts for 1% of the multibillion-dollar global shea economy.
Kyari said, ”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 per cent.
”The Rapid Assessment of the Shea Value Chain, conducted by the the Federal Ministry of Industry, Trade and Investment and in close collaboration with the Federal Ministry of Agriculture and Food Security, provided the evidence that shaped this Presidential directive.”
According to the minister, the assessment revealed that the informal cross-border trade lost more than 90,000 metric tonnes of raw shea annually.
He added, ” Nigeria’s processors operate at only 35 to 50 per cent capacity despite a national installed capacity of 160,000 metric tonnes.”
According to Kyari, limits have already been put in place by Ghana, Burkina Faso, Mali, and Togo, among other regional neighbors, to safeguard their businesses.
He claims that Nigeria is left “as the outlier and a hotspot for opportunistic and unregulated buying,” leaving it vulnerable.
The minister stated that the shea industry has the potential to produce over $300 million per year in the near future, highlighting the trade’s immense potential for Nigeria.
”And position Nigeria to capture a significant share of the projected $9-billion 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.
“Shea is also identified in our Zero Oil Plan as a strategic non-oil export. With a projected global market growth from 6.5 billion dollars today to nine billion dollars by 2030.
”Nigeria can position itself at the heart of this expansion,” Kyari stated.
According to him, investments in this value chain would directly result in the empowerment of women, the development of jobs in rural areas, and sustainable lives because women made up 90% of the pickers and processors of shea.
The minister claimed that Nigeria ran the risk of becoming the raw storage facility for the region since neighbors like Burkina Faso, Togo, and Mali were already limiting raw exports.
He claimed that this was consistent with the Tinubu administration’s emphasis on women’s empowerment.
Kyari said, ”And the pledge by the Federal Ministry of Agriculture and Food Security “not only to support the rural population but also to create a pathway for national economic development.
”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 Federal Government rapid assessment, which engaged over 2,000 pickers and 65 processors, confirmed the urgent need for action.
”Informal exports, estimated at 90,000 metric tonnes annually, are draining our domestic supply.”
The minister claimed that Nigeria ran the risk of becoming the raw storage facility for the region since neighbors like Burkina Faso, Togo, and Mali were already limiting raw exports.
Kyari said, “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.” (NAN)