Nigeria has extended its restriction on the export of raw shea nuts for an additional year, reaffirming its strategy to strengthen domestic processing capacity and capture greater economic value from the country’s vital agricultural resource.
According to dabafinance.com, the move is aimed at encouraging investment in local refining and manufacturing, creating jobs across the shea value chain and positioning Nigeria as a competitive producer of finished shea-based products rather than a supplier of unprocessed commodities.
The measure, effective from Feb. 26, 2026, to Feb. 25, 2027, prolongs an initial six-month moratorium introduced in August 2025. Authorities say the goal is to reposition Nigeria in higher-value segments of the shea industry under the government’s industrialization agenda.
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Nigeria accounts for close to 40% of global shea supply, with annual output estimated between 350,000 and 500,000 tons. Yet it captures only about 1% of the global shea market, valued at $6.5 billion. Most exports consist of raw nuts, while processed shea butter, used in food, cosmetics and pharmaceuticals, can sell for 10 to 20 times more.
Under the new framework, all shea exports must pass through the Nigeria Commodity Exchange. Exemptions allowing direct shipment of raw nuts have been removed. The government also plans to use the Nigeria Enterprise Support Scheme to finance new processing capacity.
The policy has already affected prices. Since the initial announcement in 2025, nut prices have fallen by about one-third. At the end of the harvest season in December, shea nuts traded near 850 naira per kilogram.
Industry groups had requested a grace period during the first suspension, citing contract losses. The government declined.
Other West African producers, including Burkina Faso, Mali, Ivory Coast and Togo, have adopted similar measures.
