NPNEN Reacts to Federal Government’s Ban on Raw Shea Exports: Calls for Strategic, Data-Driven Policy to Avoid Collateral Damage

Abuja, Nigeria – [Date] – The Network of Practicing Non-Oil Exporters of Nigeria (NPNEN) expresses profound concern over the Federal Government’s recent imposition of an outright ban on the export of raw shea products. While we unequivocally support the strategic goal of promoting local value addition and industrialization, the current approach is ill-timed, poorly informed, and risks causing severe economic damage to a sector dominated by rural women and smallholders, while doing little to achieve its intended objective.

As key stakeholders in the non-oil export sector, we have long advocated for policies that grow local industries, empower communities, and attract investment. However, bans are not strategies. This abrupt prohibition destabilizes livelihoods, undermines Nigeria’s credibility in international trade, and fails to address the real bottlenecks stifling the shea value chain.

The Data Behind Our Concern: Why This Ban Misses the Mark

Nigeria is the global leader in raw shea nut production, accounting for nearly 43% of the global supply with an annual production of approximately 350,000 MT—a figure with the potential to reach 900,000 MT. Despite this dominance, Nigeria is conspicuously absent from the list of top shea butter exporting nations, which is led by the United States, Thailand, and Italy.

This anomaly, reminiscent of the cocoa value chain, is not due to a lack of raw materials but to critical structural deficiencies:

Key Risks and Unintended Consequences

Our Position

The Way Forward: A Call for a Strategic Policy Mix

NPNEN urgently calls on the Federal Government to:

The new 30,000 MT facility in Mokwa is a step in the right direction, but it alone cannot absorb the existing surplus, let alone future production growth. Without the right enabling environment, SMEs and processors will struggle, and the potential of this sector will remain unrealized.

NPNEN stands ready to work with the government to design a strategic roadmap that truly strengthens the shea sector, protects livelihoods, attracts investment, and positions Nigeria as the global leader in value-added shea products it deserves to be.

Signed,

Network of Practicing Non-Oil Exporters of Nigeria (NPNEN)

For more information, please contact:
NPNEN Secretariat.

CHIDI UGWU

The Network of Practicing Non-Oil Exporters of Nigeria (NPNEN) has called on the Federal Government to reconsider its recent ban on shea exports, advocating for a phased, consultative approach to bolster local processing and industrialization.

In a detailed position paper obtained by our Correspondent, the group emphasized the need for policies that support value addition, protect smallholder livelihoods, and align with Nigeria’s regional trade commitments.

NPNEN expressed strong support for building industries to process raw materials locally, particularly in the shea sector, which holds significant potential for job creation, women’s empowerment, and non-oil export growth.

However, the group stressed that such industrialization requires robust investment in infrastructure, clear incentives, and well-defined transitional policies. “Nigeria must build industries that process raw materials locally, but this can only succeed with the right support systems in place,” the submission stated.

Rejecting sudden export bans, NPNEN argued that prohibition is not a viable strategy for driving industrialization. Instead, the group proposed a phased roadmap developed through stakeholder consultation to balance industrial goals with export credibility and the livelihoods of smallholder farmers.

The organization also highlighted the need for better policy coordination among the Ministries of Trade, Agriculture, and related agencies to create inclusive, sustainable, and enforceable solutions.

To address the current policy challenges, NPNEN urged the Federal Government to take the following steps: “Reverse the blanket ban on shea exports and replace it with a phased restriction tied to measurable milestones for local processing capacity.

“Engage stakeholders, including exporters, processors, and investors, in a transparent consultation process to design effective policies.

“Invest in processing facilities across shea-producing states, using the Mokwa facility as a model to scale up value addition.

“Provide incentives for small and medium enterprises (SMEs) and women-led businesses in the shea value chain to promote inclusivity.

“Align trade policies with Nigeria’s commitments under the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA) to maintain regional credibility”.

NPNEN warned that reactive and unilateral policies risk undermining the shea sector’s potential to drive economic growth.

“The shea sector offers Nigeria a unique opportunity to create jobs, empower women, and boost non-oil exports, but this will be squandered without inclusive and well-coordinated policies,” the group stated.

The organization expressed its readiness to collaborate with the government to develop a roadmap that strengthens the shea sector, supports exporters and processors, and positions Nigeria as a global leader in value-added shea products.

The 2ND Non-Oil Exporters Town Hall Meeting is set to Commence on the 28th of may 2021

Theme: – For Nigeria to Benefit from AfCFTA : Opportunities, Challenges and Strategies.

Register to participate at http://bit.ly/ExportersTownHall