On August 26, President Bola Tinubu announced a six-month suspension on shea nut exports, citing the need to encourage local value addition and accelerate industrialisation according to Muda Yusuf, chief executive officer of CPPE, the abrupt implementation has caused widespread disruptions across the shea nut value chain.
Shea nut prices have fallen by over 30 percent since the ban, eroding incomes of farmers and aggregators.
“Existing export contracts face potential default, exposing exporters to legal and reputational risks. Loan defaults loom large, as many exporters rely on bank financing for procurement and aggregation”, Yusuf said.
Yusuf acknowledged that local processing of shea nuts holds promise for job creation, foreign exchange earnings, and industrial growth.
Nigeria, he noted, produces about 40 percent of the world’s shea nuts, making it a key player in the global market.
However, he cautioned that policy missteps could reverse progress already made in boosting non-oil exports. “Policy credibility is crucial,” he said.
“Sudden bans on exports with immediate effect introduce uncertainty, heighten risk, and undermine investor confidence—deterring investment not just in shea but across the broader non-oil export sector.”
