Nigeria’s Strategic Shift in the Global Shea Industry
Nigeria, a dominant player in global shea production, contributing over 50%, is embarking on a transformative journey to maximize its economic gains from this valuable commodity. Historically, the country has primarily served as a supplier of raw shea nuts, missing out on the significantly higher value-added opportunities presented by processing and manufacturing shea-based products. Recognizing this untapped potential, President Bola Ahmed Tinubu’s administration implemented a temporary suspension on the export of raw shea nuts in August 2025. This strategic move, characterized as bold and forward-looking, aims to fundamentally reshape Nigeria’s role in the global shea industry, shifting from raw material supplier to a leading producer of high-value shea products. This initiative aligns with a broader economic renewal agenda focused on national re-orientation, inclusivity, and accountability.
The temporary export ban is not a protectionist measure, but rather a catalyst for local value addition. It aims to ensure that Nigerian shea processors have access to sufficient raw materials, enabling them to operate at full capacity, generate employment, and stimulate investment in processing infrastructure. By processing shea nuts domestically, Nigeria can capture a larger share of the estimated $6.5 billion global shea market, currently dominated by international processors who benefit from the value-added activities. The government projects that this policy shift could generate up to $300 million annually in the short term, demonstrating the significant economic potential waiting to be unlocked. This initiative also addresses the informal trade in shea nuts, channeling the commodity through formal channels that support local industries and generate revenue for the government.
This strategic shift will have far-reaching implications for Nigeria’s economy, particularly in rural communities. Niger State, a major shea-producing region, is expected to be a primary beneficiary. The increased demand for locally processed shea will drive investment in processing facilities, creating employment opportunities, particularly for women and youth who are traditionally involved in shea nut collection and processing. This empowerment of rural communities aligns with the government’s focus on inclusivity and demonstrates a commitment to equitable economic development. Furthermore, the development of a robust shea processing industry will contribute to technology transfer, enhancing local expertise and fostering innovation in shea-based product development.
The government’s commitment to this transformation extends beyond the export ban. It is actively fostering an enabling environment for the shea industry to thrive, through policy support and the promotion of public-private partnerships. The National Shea Products Association of Nigeria has expressed strong support for the policy, recognizing its potential to revolutionize the industry. This collaboration between the government and industry stakeholders is crucial for the successful implementation of the policy and for ensuring its long-term sustainability. The government is also emphasizing the importance of ethical leadership and accountability in driving national development, underscoring the need for transparency and good governance in all aspects of the shea value chain.
The government’s broader economic renewal strategy encompasses various reforms designed to enhance fiscal discipline, accelerate digital transformation, expand infrastructure, and empower youth. These initiatives are interconnected and contribute to an overall environment conducive to economic growth and development. Examples include the implementation of the Treasury Single Account and the Government Integrated Financial Management Information System to strengthen financial oversight and improve transparency. Improvements in Nigeria’s ranking on the Transparency International Corruption Perceptions Index further indicate progress in tackling corruption and promoting good governance.
The shea industry initiative is a key component of the Renewed Hope Agenda, which seeks to revitalize Nigeria’s economy and improve the lives of its citizens. The focus on value addition, local processing, and rural empowerment underscores the government’s commitment to inclusive growth and sustainable development. By maximizing the economic potential of the shea industry, Nigeria aims to create a virtuous cycle of investment, job creation, and increased revenue, ultimately contributing to greater prosperity for all Nigerians. This decisive move to reposition itself in the global shea industry exemplifies Nigeria’s ambition to leverage its natural resources to drive economic transformation and become a global leader in value-added agricultural products.
