The Centre for the Promotion of Private Enterprise (CPPE) has faulted the Federal Government’s instant ban on the export of raw shea nuts, warning that the policy is causing severe disruptions across the value chain.
The six-month ban, announced recently and enforced with immediate effect, is aimed at driving local value addition and boosting Nigeria’s industrialisation efforts. However, CPPE insists that while the goal is laudable, the approach is flawed.
In a position paper signed by its Chief Executive Officer, Dr. Muda Yusuf, the Centre argued that the abrupt ban is hurting farmers, aggregators, exporters, and logistics providers, eroding confidence in Nigeria’s non-oil export sector.
“Policy credibility is crucial,” the report stated. “Sudden bans with immediate effect introduce uncertainty, heighten risk, and undermine investor confidence—not just in shea but across the broader non-oil export sector.”
According to CPPE, the announcement has already triggered a more than 30 per cent drop in shea nut prices, reducing farmers’ incomes, while existing export contracts face possible defaults, exposing exporters to legal and reputational risks. Exporters who rely on bank loans for procurement now risk defaulting on repayments.
The Centre further warned that the policy effectively penalises primary producers to benefit processors, creating a zero-sum situation instead of a shared-growth model.
CPPE’s Recommendations
To strike a balance between industrialisation and economic inclusion, the Centre proposed:
A phased timetable for phasing out raw exports, giving businesses room to adjust.
Allowing fulfilment of existing export contracts to protect Nigeria’s credibility.
Addressing structural challenges—power supply, logistics, infrastructure, and financing—to ensure processors can compete internationally without relying on artificially cheap inputs.
Promoting innovation and efficiency in processing rather than policies that indirectly force farmers to subsidise processors.
Ensuring fair returns for farmers to sustain rural livelihoods and incentivise production.
Establishing regular consultative platforms involving farmers, processors, exporters, and financiers.
Improving policy predictability and transparency to build investor trust.
Balancing Growth and Stability
Nigeria accounts for an estimated 40 per cent of global shea nut production, underscoring the country’s huge potential in the sector. CPPE emphasised that local value addition is vital for economic diversification, but must be pursued inclusively.
“A phased transition, backed by structural reforms, will protect rural incomes, sustain non-oil export growth, and ensure processors thrive on competitiveness rather than subsidised raw materials,” the paper concluded.
