President Bola Tinubu on Tuesday approved a six-month temporary ban on the export of raw shea nut to curb informal trade, boost local processing, protect and grow Nigeria’s shea industry.
The ban, which is with immediate effect, is subject to review on expiration and specifically aimed at boosting Nigeria’s shea value chain to generate around $300 million annually in the short term.
This was disclosed in a press statement by the Senior Special Assistant to the President on Media & Communications (Office of the Vice President), Stanley Nkwocha.
Vice President Kashim Shettima, who announced the president’s directive on Tuesday during a multi-stakeholder meeting at the Presidential Villa, called on the Federal Ministry of Finance and other relevant government agencies to fast-track enforcement.
Speaking further on the directive, the Vice President said the decision was not “an anti-trade policy but a pro-value addition policy designed to secure raw materials for our processing factories and enabling industries run at full capacity, thereby boosting rural income and jobs for our people.”
He added that the decision “will transform Nigeria from an exporter of raw shea nut to a global supplier of refined shea butter, oil and other derivatives,” just as he said it is about industrialisation, rural transformation, gender empowerment and expanding Nigeria’s global trade footprint.”
On opportunities for job creation and income generation, the Vice President said, “Nigeria produces nearly 40% of the global shea product, yet we account for only 1% of the market share of $6.5 billion.
“This is unacceptable. We are projected to earn about $300 million annually in the short term, and by 2027, there will be a 10-fold increase. This is our target.”
Shettima explained that the ban was a collective decision involving the sub-nationals and the Federal Government, with clear directions for economic transformation in the overall interest of the nation.
“Government is not closing doors; we are opening opportunities. Mr President is currently in Brazil, and both countries have agreed to prioritise access for Nigerian shea butter and oil into the Brazilian market. This process will be completed within the next 3 months,” the VP added.
The Vice President further highlighted the gender dimension of the policy, noting that “by protecting the shea industry, we are protecting livelihoods, dignity and opportunity for millions of our women.
“We are not closing doors, we are opening better ones. Today, we plant the seeds of an industry that will yield fruit for decades to come for our women, for our economy, and for Nigeria’s place in global trade.”
Earlier, the Minister of Agriculture and Food Security, Senator Abubakar Kyari, who explained how the nation stands to benefit from the ban, regretted that despite being the world’s largest producer of shea nuts, contributing nearly 40 per cent of global supply, Nigeria captures less than one per cent of the multi-billion-dollar global shea economy.
He said, “Nigeria produces an estimated 350,000 metric tonnes of shea annually across 30 states, with the potential to reach nearly 900,000 metric tonnes. Yet our share of the 6.5-billion-dollar global market is less than one per cent.
“The Rapid Assessment of the Shea Value Chain, conducted by the PFSCU, the Federal Ministry of Industry, Trade and Investment and in close collaboration with the Federal Ministry of Agriculture and Food Security, provided the evidence that shaped this Presidential directive.”
The PUNCH