Nigeria Extends Shea Nut Export Ban to 2027

President Bola Tinubu of Nigeria has extended the ban on the export of raw shea nuts, initially introduced as a temporary measure in August 2022, until February 25, 2027. This policy aims to enhance local processing and integrate Nigeria into the global shea value chain, potentially generating an annual revenue of $300 million.

The extension, approved in late February, has sparked debate regarding its short-term impact on foreign exchange (FX) pressures and the necessity for structural reforms in the shea industry. Stakeholders, including Ademola Adebayo, CEO of Whitestep Empir, and Aisha Moham from Peacecoop Ltd, have expressed concerns that the ban alone will not create value and that Nigeria must build industrial capacity to access higher-value segments of the global market.

The Central Bank of Nigeria's Governor, Olayemi Cardoso, noted that the country's external reserves are closely linked to export earnings, emphasizing the relevance of shea policies to broader macroeconomic stability.