Nigeria’s sudden ban on uncooked shea nut exports is hurting farmers, exporters and traders, in keeping with a brand new coverage temporary from the Centre for the Promotion of Personal Enterprise (CPPE), which urged the federal government to undertake a phased strategy.
In accordance with the temporary launched on Sunday by the CPPE chief government, Muda Yusuf, the ban was launched with out session and has triggered sharp disruptions within the provide chain.
Shea nut costs have fallen greater than 30 per cent for the reason that measure took impact, eroding the incomes of farmers and aggregators. Exporters are going through doable defaults on contracts and looming mortgage repayments, whereas hundreds of jobs in cultivation, logistics and commerce are beneath risk.
President Bola Tinubu, on 26 August, introduced the short-term suspension of the export of shea nuts. The ban, which is with quick impact, is topic to assessment on expiration and particularly geared toward boosting Nigeria’s shea worth chain to generate round $300 million yearly within the brief time period.
Nigeria accounts for about 40 per cent of world shea nut output, and officers argue that worth addition at house might generate jobs, international trade and industrial development.
“Sudden bans on exports with quick impact introduce uncertainty, heighten danger, and undermine investor confidence,” mentioned Mr Yusuf. “The coverage successfully penalises main producers to profit processors, making a zero-sum state of affairs somewhat than a shared-growth mannequin.”
The assume tank warned that abrupt coverage shifts ship “unfavorable alerts to traders” and will reverse beneficial properties in non-oil exports, which exceeded $3 billion within the first quarter of 2025.
CPPE beneficial that the federal government permit corporations to honour current export contracts, introduce clear timelines for phasing out uncooked exports, and deal with structural constraints corresponding to energy provide, logistics and financing that make native processors much less aggressive.
It additionally urged the federal government to “Introduce clear timelines for phasing out uncooked exports, permitting companies to regulate operations; Allow fulfilment of current export contracts to stop defaults and preserve Nigeria’s credibility; deal with structural challenges, energy provide, logistics, infrastructure, and financing, to allow processors to buy uncooked supplies at market costs and nonetheless compete internationally.”
It additionally beneficial safeguarding farmers’ incomes by making certain they obtain honest market worth for his or her produce, whereas avoiding insurance policies that shift prices onto them. CPPE urged common session with farmers, processors, exporters and financiers to enhance transparency and construct investor belief.
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Nigeria has lengthy struggled to stability the push for industrialisation with the necessity to defend smallholder farmers who dominate the nation’s agricultural sector. Earlier sudden restrictions, corresponding to bans on maize and rice imports, have drawn criticism for destabilising markets and deterring funding.
Mr Yusuf mentioned Nigeria’s industrial coverage must be “strategic, inclusive, and market-friendly,” including that processors ought to thrive on competitiveness somewhat than on “a regime of subsidised uncooked supplies.”
The CPPE temporary known as for normal engagement with farmers, exporters and financiers to construct belief and coverage stability.
