By Adaora Adibe and Nafisat Abdulrahman
Following the Federal Government’s temporary suspension of raw shea nut exports on 16 August 2025, a policy move that has elicited notable reactions across the value chain, the Raw Materials Research and Development Council (RMRDC) has intensified its stakeholder engagement efforts.
As part of its ongoing consultations, the Council convened two virtual sessions under its RMRDC 360 Webinar Series, moderated by the Assistant Director, Directorate of Corporate Affairs (DCA), Mrs. Stella Azi. Both sessions, held two weeks apart, 30th October, and 13th November 2025 respectively brought together key industry players and stakeholders to examine how recent policy measures affect the nation’s raw materials sector, particularly the shea industry.
Discussing on the theme: “Impact of Government Policy on Raw Materials Development in Nigeria: A Case Study of the Recent Ban on the Exportation of Raw Shea Nut,” the President, National Shea Products Association of Nigeria (NASPAN), Mr. Mohammed Ahmed Kontagora, a guest speaker, explained during the webinar that shea trading in Nigeria has largely operated informally over the years, with little or no data collected on production and trade activities. He, however, noted that with the Federal Government’s recent attention to the sector, there has been growing interest in establishing shea processing factories in the country.
“With the government coming in now, giving the sector the desired attention, we will harness this our resources and then to some extent regulate it and also ensure that there is code of practice. That has to be done among us the stakeholders…” he noted.
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Mr. Kontagora further observed that the new policy was announced and implemented immediately without proper planning or a defined time frame, thereby negatively affecting those involved in export. He noted that the instant implementation of the policy without an implementation plan was unfair to exporters who had already signed contracts with foreign partners. According to him, if a grace period had been provided before the policy took effect, it would have allowed them to complete their existing contracts similar to the approach adopted in Ghana, where a time frame was given before enforcement.
He added that following the announcement of the ban, the price of shea nuts initially dropped but has since risen again due to continued smuggling activities across the borders.
The NASPAN President further emphasized the need for a roundtable discussion between the government and industry stakeholders to chart a sustainable way forward. According to him, it is important to ensure that when new processing factories are established, they have adequate access to raw materials to operate efficiently. He also called for the identification of aggregators, noting that they are far more in number than processors. He recommended organizing them into cooperatives, registering them formally and ensuring they operate under a clearly defined code of ethics. He further emphasized the need for a dedicated funding window for industries, noting that lack of financing remains their greatest challenge.
On his part, Dr. John Isemede, an expert in international business and trade, spoke extensively on the impact of government policy on raw materials, drawing from his decades of experience. He reflected on Nigeria’s history in agriculture and solid minerals, highlighting that only 2 percent of agricultural activity in the country is plantation-based, 18 percent is commercial, while a staggering 80 percent remains subsistence farming. According to him, this structure is not sustainable for a nation with Nigeria’s population.
He further questioned Nigeria’s foreign engagement framework, stating that while the country may have foreign policy objectives, it lacks a coherent foreign policy strategy.
He decried that Nigeria’s challenges are largely internal, lamenting that Ministries, Departments and Agencies (MDAs) do not work collaboratively. He also highlighted the shortage of functional laboratories across the country and the lack of adequate tools needed for value addition.
He proposed solutions that include issuing clear targets to MDAs, the private sector and local governments, as well as ensuring proper application of control, coordination, communication and cooperation to make systems work effectively.
Meanwhile, the Managing Director, Salid Agriculture, Mr. Ali Saidu, stated that the current situation should not be a time for blame but an opportunity for growth and development. He noted that smuggling, which has become a recent challenge following the ban, occurs even in advanced economies.
“The ban on the export of the shea nuts out of Nigeria is a welcome development and it’s coming at the right time, for me as a processor we need to see an improvement on quality of shea kennels in Nigeria, we need to see a competitive price of shea nuts in Nigeria or shea kennels” he said
Mr. Saidu also called on the Federal Government, relevant agencies, financial institutions and industry stakeholders to work collaboratively in addressing the emerging issues. He specifically urged the Raw Materials Research and Development Council (RMRDC) to refer to the existing Roadmap as a guide for policy implementation and sectoral development.
“… we are always paying lip service to the fact that we want to grow non-oil exports in this country, but those things that need to be done to support the growth of non-oil exports are always not being addressed” he said.
Mr. Saidu further appealed to Agencies like Bank of Industry (BOI), Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Commercial banks, the Federal Ministry of Women Affairs to engage and support the sector especially the women involved in shea nut collection, describing them as the backbone of the shea industry. According to him, these women play a crucial role in sustaining the value chain and should be adequately encouraged and empowered.
