FG moves to end raw Shea exports, pushes industrial processing

By: Amarachi Okonkwo 

Nigeria is intensifying efforts to reposition its shea industry through a deliberate shift from raw commodity exports to value-added processing, as part of a broader agro-industrialisation drive aimed at boosting export earnings and deepening economic diversification.

The Federal Government said the policy direction is focused on strengthening local value addition across the shea value chain, reducing post-harvest losses, and increasing Nigeria’s share of the global shea market beyond its current dominance in raw nut supply.

Nigeria currently accounts for about 40 per cent of global shea nut production, making it the world’s leading exporter of the commodity in its unprocessed form. However, policymakers say the country captures only a fraction of the total value generated in the global shea industry, which is largely realised through downstream processing into butter and other derivatives used in food, cosmetics, and pharmaceuticals.

The renewed push was highlighted at Shea 2026, a three-day international conference themed “Beyond Borders,” convened by the Global Shea Alliance in Accra, Ghana, from April 27 to 29, 2026. The event brings together governments, private sector players, and development partners to align strategies on trade, sustainability, and investment across the shea ecosystem.

Speaking at the forum, Marion Moon, Technical Assistant to the President on Agriculture in the Office of the Vice-President and a member of the Presidential Food Systems Coordinating Unit, said Nigeria is leveraging the platform to strengthen its influence in shaping the future of the sector.

“As the world’s largest producer, accounting for approximately 40 per cent of global shea nut supply, Nigeria is using this platform to strengthen its voice in shaping a sector from which it currently captures only a small share of global value,” she said.

Nigeria’s delegation to the conference is led by the Minister of Agriculture and Food Security, Abubakar Kyari, and the Minister of State for Industry, Trade and Investment, John Owan Enoh, reflecting what officials describe as a coordinated, whole-of-government approach to repositioning the sector under the administration’s economic reform agenda.

Enoh underscored the urgency of transitioning away from the export of raw commodities, noting that the current model limits domestic value capture and job creation.

“The era of exporting raw nuts while importing finished products must come to an end. The future lies in industrialisation, value addition, and regional integration,” he said.

At the core of the government’s strategy is the Nigeria Industrial Policy, which prioritises the development of domestic processing capacity, improved market linkages, and targeted incentives to attract private investment into value-added production.

Industry stakeholders say scaling local processing could unlock significant economic benefits, including increased foreign exchange earnings, expanded manufacturing activity, and the creation of jobs across rural and peri-urban communities.

Beyond its industrial potential, the shea sector is also seen as a critical lever for inclusive growth and environmental sustainability. Shea trees grow naturally in agroforestry parklands across Nigeria’s savannah belt, supporting biodiversity and climate resilience while providing income opportunities particularly for women, who dominate the collection and primary processing stages.

Nigeria’s participation in Shea 2026 also signals a push for stronger regional collaboration among African producers to ensure the continent captures a larger share of value from the global shea industry, which has historically been dominated by processors and manufacturers outside the region.

In a related development, the government welcomed the appointment of Ali Saidu, Managing Director of Salid Agriculture Nigeria Limited, as the new Chair of the Global Shea Alliance, describing it as a milestone that could further strengthen Nigeria’s leadership role in the sector.

Officials say the combination of policy reforms, investment promotion, and regional coordination is expected to reposition Nigeria’s shea industry as a key driver of agro-industrial growth, in line with the administration’s broader economic agenda focused on job creation, export diversification, and sustainable development.