Shea Sector: Firm Seeks Clarity On Export Ban

Alliance for Economic Research and Ethics Ltd/Gte has urged the federal government to exercise caution when implementing its proposed ban on raw shea nut exports. It cautions that a rushed approach could jeopardise existing investments, undermine thousands of livelihoods, and erode Nigeria’s competitiveness in the global market.

In a statement yesterday, the organisation, signed by its chairman, Dele Kelvin Oye, commended the government’s push for local processing and value addition in the shea industry, which is estimated to be worth $6.6 billion. It said the policy aligns with President Bola Tinubu’s industrialisation agenda and has the potential to transform rural economies and empower women.

However, the firm expressed concern that the sudden policy shift without adequate transition measures or stakeholder consultation could disrupt existing export contracts, discourage investors, and expose smallholder farmers to losses.
“Immediate policy reversals without adequate transition and sector-wide consultation risk undermining ongoing commitments, investment plans, and the livelihoods of many members of our Alliance trade networks,” the group warned.

The Alliance called for a phased and consultative rollout of the export ban, backed by clear government communication. It urged authorities to provide financing options, technical assistance, and workforce training to help processors upgrade facilities and meet export standards.
The group further recommended that the government intervene by purchasing unsold shea stock. This, it argued, would support small-scale producers, discourage smuggling, and guarantee supply for local processors.

Citing examples from Ghana, Malaysia, and Indonesia, where phased industrial policies were successfully implemented, the Alliance stressed that Nigeria must adopt a managed transition period with measurable milestones to protect vulnerable players in the value chain.

“We believe in the potential of Nigeria’s shea industry and its capacity to contribute significantly to the economy. But to succeed, the government must avoid disruption by adopting a transition plan that safeguards contracts, empowers stakeholders, and sustains Nigeria’s trade reputation,” Oye said.