The Nigerian government has recently put a six-month moratorium on the export of raw shea nuts. With this audacious move, their country is set to become a major, global supplier of refined shea products. Nigeria currently contributes close to 40% of the world’s annual production of shea nuts. This new effort provides an important opportunity for the country to seize on its rich agricultural assets to do even more.
In Nigeria, Agriculture Minister Abubakar Kyari insists that the country grows about 350,000 tonnes of shea nuts annually. Yet almost a quarter of this output disappears through illegal informal trade over borders. This illicit black market in our own backyard is doing serious damage to the local economy. It prevents Nigeria from profiting from its substantial portion of the $6.5 billion global shea market.
Shea trees grow in a wide zone called the “shea belt,” extending across the middle of Africa from West to East. Nigeria today represents only 1% of this booming market. The government’s ban aims to increase national earnings from shea nuts from $65 million to an ambitious $300 million annually by promoting local refining processes instead of exporting raw materials.
Dr. Ahmed Ismail, an expert in agricultural economics, highlighted that much of Nigeria’s shea harvest originates from rural villages in central Nigeria. He agreed that the temporary ban is a daring move, one that should have been taken long ago. This is certainly a move that requires heightened regulation,” he said. He emphasized the need for a more organized way to increase profitability for shea commerce.
Vice-President Kashim Shettima, who was responsible for the shea program, put Nigeria’s present standing in the shea market as “unacceptable.” He urged bold action now that would put power in the hands of local producers and build a resilient agricultural backbone to the country. The Nigerian government envisions a future in which Nigeria exports refined shea products. Educational Gains Their ultimate aim is for Nigeria to be able to compete with other countries globally.
The prohibition on exporting raw shea nuts is intended to encourage domestic processing and manufacturing. This will allow them to increase their shea butter production, an increasingly popular ingredient for many beauty creams and other cosmetic products. In Nigeria, the government is building local production capacity. This approach would help retain more economic benefits here at home by stemming the outward flow of profits to foreign markets.