Stakeholders in Nigeria’s agricultural export sector are expressing concern over policy uncertainty as a six month government ban on shea nut exports approaches expiration. Processors, exporters, and farmer cooperatives say clarity is urgently needed to stabilize supply chains and protect livelihoods.
The ban, initially introduced to encourage local value addition and curb raw material outflow, temporarily restricted international shipments. Authorities argued that boosting domestic processing would create employment and increase export earnings from finished products rather than raw commodities.
However, exporters contend that inadequate processing infrastructure limited the policy’s intended benefits. Many small and medium enterprises reportedly lacked capital and equipment to absorb surplus supply during the restriction period. As a result, farm gate prices fluctuated, affecting rural incomes.
Agricultural economists note that Nigeria remains one of West Africa’s leading shea producers. The commodity plays a critical role in cosmetics, food manufacturing, and pharmaceutical industries globally. Disruptions in supply contracts risk weakening Nigeria’s competitiveness relative to neighboring producers.
Farmer associations argue that while value addition is desirable, transitional support is necessary. They call for concessional financing, improved storage facilities, and technical training to strengthen domestic capacity before imposing prolonged export controls.
Government officials have yet to issue a definitive statement on whether the restriction will be extended, modified, or lifted. Industry representatives warn that continued uncertainty could deter foreign buyers and undermine long term contracts.
Trade analysts emphasize the importance of policy predictability in agricultural markets. Sudden regulatory shifts, they argue, may create volatility that discourages investment.
As the expiration date approaches, stakeholders urge dialogue between regulators and industry groups. Many recommend a phased strategy that balances export earnings with domestic industrial development.
The coming weeks are expected to clarify the government’s position. Whatever decision emerges will likely shape the trajectory of Nigeria’s shea sector and its broader non oil export ambitions.
