By Adaora Adibe
President Bola Ahmed Tinubu has approved a one-year extension of the ban on the export of raw shea nuts, reinforcing the Federal Government’s resolve to promote domestic processing and industrial development across Nigeria’s agricultural value chains.
According to a State House press release signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the ban has been extended from February 26, 2026, to February 25, 2027. The decision aligns with the administration’s Renewed Hope Agenda and its broader commitment to strengthening local value addition, expanding processing capacity, and improving livelihoods in shea-producing communities.
Shea nuts, harvested from the shea tree prevalent in Nigeria’s savanna belt, serve as the primary raw material for shea butter, a high-value product widely used in cosmetics, pharmaceuticals, and food processing. While raw nuts attract relatively modest prices in international markets, processed shea butter can fetch between 10 and 20 times the value of unprocessed exports, underscoring the economic imperative of local beneficiation.
To ensure effective implementation, the President authorised the Federal Ministry of Industry, Trade and Investment and the Presidential Food Security Coordination Unit (PFSCU) to coordinate a unified, evidence-based national framework that harmonises industrialisation, trade, and investment priorities along the shea value chain. He also approved the adoption of an export framework established by the Nigerian Commodity Exchange (NCX) and directed the withdrawal of all waivers previously granted for the direct export of raw shea nuts. Any excess supply, he said, must be exported strictly through the NCX framework in line with approved guidelines.
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Furthermore, the President directed the Federal Ministry of Finance to create access to a dedicated NESS Support Window, enabling the Ministry of Industry, Trade and Investment to pilot a Livelihood Finance Mechanism aimed at boosting production and processing capacity.
RMRDC’s 30% Value Addition Bill: A Strategic Complement
The extension of the shea export ban comes at a time when the Raw Materials Research and Development Council (RMRDC) is vigorously advocating the passage of its proposed 30% Value Addition Bill. The bill seeks to mandate a minimum of 30 percent value addition to selected raw materials before export, as a strategic measure to stimulate industrial growth, reduce capital flight, and create jobs within Nigeria.
The Council has consistently maintained that exporting raw materials without processing undermines national industrialisation efforts and deprives the country of significant economic gains. By encouraging in-country processing, the 30% value addition policy aims to foster technology transfer, build local manufacturing capacity, and position Nigeria as a competitive player in global value chains.
The Director General RMRDC, Prof. Nnanyelugo Ike-Muonso stated, ” the bill is a game changer that is critical to transforming the Nigeria economy “.
Industry analysts observe that the shea nut export ban exemplifies the very principles enshrined in the proposed RMRDC legislation. Both initiatives prioritise domestic processing over raw commodity export, ensuring that Nigeria captures greater value from its abundant natural resources.
Stakeholders have therefore called for the expedited passage of the 30% Value Addition Bill, noting that its enactment would provide a robust legal framework to sustain policies such as the shea export restriction and extend similar protections to other strategic raw materials.
As Nigeria seeks to diversify its economy and accelerate industrial transformation, policy coherence between executive actions and legislative backing will be critical. The alignment between the President’s directive on shea nuts and RMRDC’s value addition agenda signals a deliberate shift toward a more resilient, value-driven export economy.
The Federal Government reiterated its commitment to inclusive growth, local manufacturing, and the repositioning of Nigeria as a leading participant in global agricultural and industrial value chains.
