Lagos, Aug 28 (AP) Nigeria has enacted a six-month ban on the export of raw shea nuts, aiming to position the nation as a significant global supplier of refined shea butter and skincare ingredients.
Vice President Kashim Shettima announced the restriction, which places Nigeria among several West African countries, such as Burkina Faso, Mali, Togo, Ivory Coast, and Ghana, that have recently implemented similar export limitations.
"This initiative will transform Nigeria from merely exporting raw shea nuts to becoming a global supplier of refined shea products, including shea butter and oils," Shettima stated. He emphasized that the policy is designed to enhance value addition and boost job creation in rural areas by securing raw materials for domestic factories instead of being purely anti-trade.
Raw shea nuts are processed into shea butter, a vital component in many skincare products like lotions, shampoos, conditioners, and moisturizers. Abuja-based dermatologist Zainab Bashir highlighted the increasing demand for non-toxic skincare bases, noting, "Shea butter is crucial in this growing market."
Nigeria accounts for 40% of the global supply of shea nuts yet represents just 1% of the $6.5 billion global market share in shea products, according to Shettima. This ban follows the recent establishment of a large shea butter processing plant in Niger state, which officials claim is one of Africa's biggest.
While the ban is expected to generate $300 million in the short term and $3 billion by 2027 if maintained, experts urge more investment in domestic industries to sustain such growth. Ikemesit Effiong from SBM Intelligence remarked, "The government seems to have identified a supply-gap issue, but merely banning exports won't necessarily support local processors."
Despite being part of President Bola Tinubu's administration, which has advocated for a free-market approach by lifting various subsidies and revising import policies, this export ban appears contradictory to Nigeria's broader trade policy. (AP) GSP
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