Raw materials: Nigeria bans raw shea nut export to spur local industry growth

Raw materials: Nigeria bans raw shea nut export to spur local industry growth

Nigeria has imposed a six-month ban on the export of raw shea nuts — a vital ingredient in the beauty and personal care industry — as part of efforts to transform the country into a global hub for refined shea butter, oil and other derivatives.

Nigeria follows a growing list of other West African countries, including Burkina Faso, Mali, Togo, Ivory Coast and Ghana, that have banned or restricted export of the crop in the past two years.

Announced by Vice President Kashim Shettima on Tuesday June 26 with immediate effect, the ban follows a multi-stakeholder meeting in Abuja.

This is not an anti-trade policy; it is a pro-value addition policy,” Shettima said. “We want our factories running at full capacity. We want our women earning more. And we want Nigeria to move from exporting raw nuts to selling butter, oil, and other derivatives to the world.

Agriculture Minister Abubakar Kyari noted that although Nigeria produces 40% of the world’s shea nuts, it captures only 1% of the US$6.5-billion global shea products market.

He added that regional neighbors already restrict raw shea exports to protect their industries, leaving Nigeria exposed to unregulated buyers.

The government hopes to leverage Nigeria’s vast endowment — over five million hectares of wild shea trees — to dominate global supply of higher-value derivatives like butter and stearin. Talks are underway with Brazil to secure preferential market access for Nigerian shea products within three months.

Officials say the ban will be reviewed after six months, but the ambition is clear: by 2027, Nigeria aims to multiply tenfold its revenues in this sector.

SOURCE

No votes yet.
Please wait...

Leave a Reply

Your email address will not be published. Required fields are marked *