Nigeria’s Shea Sector Rebounds As Local Processing Spurs Revenue Growth

Market information shows that shea seed prices successful Nigeria are stabilising aft a little dip pursuing the Federal Government’s prohibition connected earthy exports. Prices, which fell sharply successful the days instantly aft the announcement, person steadily rebounded arsenic home processors measurement successful to sorb supply. Today, mean prices are approaching pre-ban levels, signalling increasing assurance successful the policy.
Before the argumentation was announced, prices averaged astir ₦850 per kilogram. In the days instantly pursuing the announcement, prices fell sharply to astir ₦570 per kilogram arsenic traders and middlemen adjusted to the caller marketplace realities. However, by mid-September, prices had rebounded to ₦710 and ₦800 per kilogramme towards the extremity of September, indicating renewed assurance and an emerging equilibrium betwixt proviso and demand. As of today, the mean marketplace terms for shea nuts stands astatine astir 1,000 per kilogram, reflecting some betterment and increasing stability.

The argumentation is anchored successful the Renewed Hope Agenda and reflects H.E. President Bola Ahmed Tinubu’s Nigeria First Economic Policy, which prioritises home worth summation arsenic the pathway to growth.
Though the state supplies much than a 3rd of the world’s shea, it captures little than 1% of the US$6.5bn planetary marketplace due to the fact that earthy nuts person historically been exported with minimal processing. By securing earthy worldly for implicit 20 section plants — galore of which had been operating beneath 30% capableness — the prohibition is strengthening industries, safeguarding jobs, and boosting economical resilience.
“This argumentation gives america the stableness we’ve agelong needed to plan, invest, and expand,” said Sadiq Kassim, PRO, Nigeria Agribusiness Group (NABG).

“Before now, the unregulated export of earthy nuts drove unpredictable terms swings and squeezed processors retired of the market. With the prohibition successful place, earthy materials are staying in-country, marketplace prices are becoming much stable, and we tin tally our factories person to afloat capacity. This means amended income for agrarian women, dependable request for farmers, and a stronger instauration for Nigeria’s shea worth chain.”
This absorption aligns with the 30% Value Addition Bill, championed by the Raw Materials Research & Development Council (RMRDC) and passed by the Senate successful July 2025. Now awaiting concurrence successful the House of Representatives and Presidential assent, the Bill mandates that nary earthy worldly of Nigerian root beryllium exported without astatine slightest 30% home processing.

The Director-General of RMRDC, Prof. Nnanyelugo Martin Ike-Muonso, said, “Without an inducement operation to physique capableness crossed our worth chains, inefficiencies persist, prices rise, and opportunities are lost. This is wherefore we are championing the 30% worth summation measure earlier export — to support section industries, make jobs, and enactment Nigeria first.”

Olaolu Ajide, a Local Buying Agent (LBA) successful Ibadan, commended the government’s determination to prohibition the exportation of shea nuts. He said, “Stopping the exportation of earthy shea nuts has a affirmative effect connected the economy. The authorities indispensable enforce the prohibition to guarantee the section industries tin turn and grow the worth concatenation to make much jobs for our people.”

The Federal Ministry of Industry, Trade & Investment is starring follow-up engagements with processors, traders, and husbandman groups to guarantee creaseless execution. To complement this, the Presidential Food Systems Coordinating Unit (PFSCU) volition enactment by facilitating a accelerated appraisal adjacent period crossed the 5 cardinal shea-producing states and among processors and traders. This workout volition make updated data, place bottlenecks, and guarantee authorities and manufacture stay aligned successful advancing Nigeria’s industrialisation docket nether the Renewed Hope Agenda and the President’s Nigeria First Economic Policy.