The Alliance for Economic Research and Ethics, a think-tank institution, has advised the Federal Government to initiate an industry-wide consultation on the recent policy which stopped the export of the shea nuts from Nigeria.
The body opines that while the recent policy will boost Nigeria’s industrialisation, rural transformation and gender empowerment in the long term, in the short to medium term, it could undermine ongoing commitments, investment plans, and the livelihoods of many investors within the value chain.
President Bola Tinubu had announced on August 27, 2025 that there will be a six-month suspension of the shea nuts exports.
“Nigeria’s shea is our green wealth. We produce nearly 40% of the world’s supply, yet capture less than 1% of its $6.5bn global market. That imbalance ends now. I have approved a six-month suspension of raw shea exports, on the recommendation of the Presidential Food Systems Coordinating Unit, to secure supply for local processors, create jobs, and protect a value chain where 95% of pickers are women. This is a win for our farmers, for our women, and for Nigeria,” Tinubu said.
“VP Kashim Shettima will work with stakeholders to rapidly expand processing capacity and ensure that this reform translates into lasting prosperity. With new market access opening in Brazil and beyond, we will no longer export poverty and import value. We will create value at home, compete abroad, and deliver prosperity under the Renewed Hope Agenda,” he added.
Commenting on the recent FG policy, Chairman of The Alliance for Economic Research and Ethics LTD/GTE, Dele Oye, said his institution welcomes the policy but the FG must provide a robust transition period supports that prevent smuggling, improves compliance and revenue collection
“The Alliance believes in the potential of Nigeria’s shea industry and its capacity to contribute significantly to our economy. However, we must approach policy changes with robust monitoring, digital market intelligence, stakeholder feedback and multi-agency cooperation thereby ensuring that the interests of all stakeholders are taken into account,” Oye said.
“For Nigeria to succeed in shea nut industrialisation, the policy must mitigate the risk of capacity constraints and supply gaps. Given the perishable nature of agriculture products and the limited shea nuts processing capacity, the government will have to step in to purchase all the current raw output and unsold stock. Then, the government can sell to willing processors,” he added.
The Alliance cited similar cases of rural transformations in Malaysia, Indonesia, India and Ghana. Especially Ghana, the country allowed producers to adjust, upgrade, and meet new standards without abruptly terminating existing engagements.
Oye says the Alliance is ready to collaborate with the government and industry partners in order to create a sustainable and thriving shea sector that benefits Nigerians within the shea butter value chain, and the overall economy.
