Shea export ban sparks concern over jobs, contracts

The federal government’s recent decision to ban the export of raw shea nuts has triggered concern among industry stakeholders who warn that the move, if not carefully managed, could disrupt contracts, strain livelihoods, and undermine Nigeria’s position in global markets.

The Alliance for Economic Research and Ethics (AERE), in a statement, said while the ban aligns with the government’s push for industrialisation and local value addition in the shea sector—valued at about $6.6 billion—its sudden implementation risks unintended fallout.

“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,” said Dele Oye, chairman of AERE.

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Nigeria is the world’s leading producer of shea nuts, with the crop supporting thousands of women in rural communities. Analysts say the export ban could create opportunities for local processing into shea butter and related products, but warn that the country’s limited processing capacity may struggle to absorb current supply.

Oye called for a phased implementation plan, backed by clear communication, financing, workforce training, and technical support for processors.

“For many exporters and processors, this six-month window is a critical phase for capital recovery and project ramp-up,” he noted.

The group urged the government to consider purchasing raw output and unsold stock from farmers during the transition, arguing that such an intervention would protect vulnerable stakeholders, curb smuggling, and ensure continuity in international trade relations.

Oye added that case studies from countries like Ghana, Malaysia and Indonesia show that managed timelines and stakeholder consultations are critical to successful policy shifts in commodity markets.

“A staged timeline gives processors, exporters, and financial institutions time to invest in upgrading refining, quality control, and packaging to meet export standards. It will preserve and grow existing commitments.”

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For Nigeria, sustaining its standing in global markets while moving up the value chain will require balancing industrial policy with trade predictability, especially for bilateral partners that depend on consistency in supply.

Oye emphasised that robust monitoring, digital market intelligence, and multi-agency cooperation will be key to ensuring the shea ban strengthens rather than weakens the sector.

Source: Businessday.ng | Read the Full Story…