Shea nut prices in Nigeria have dropped by a third to N800,000 per tonne after the government’s six-month export ban aimed at boosting local processing and job creation.
Nigeria’s shea nut prices have fallen sharply following the government’s decision to halt exports, dropping 33 per cent to N800,000 per tonne, Bloomberg reported.
President Bola Tinubu announced the six-month moratorium on shipments to “secure supply for local processors, create jobs, and protect a value chain where 95 per cent of pickers are women.”
Nigeria produces about 500,000 tonnes of shea nuts annually, making it one of the world’s largest producers, alongside Burkina Faso, Ghana, Mali, Ivory Coast, and Togo—all of which already restrict exports to encourage local processing.
Despite the government’s intentions, analysts warn of significant short-term disruptions. Rildwan Bello, Chief Executive Officer of Lagos-based Vestance, said many exporters risk defaulting on contracts. “Exports made the market vibrant. Local demand is not as high as local supply… The idea of growing the local industry doesn’t happen overnight,” he told Bloomberg.
Shea nuts, used in cosmetics, confectionery, and as a substitute for cocoa butter, now trade at about $521 per tonne. While exporters express concern, some local processors welcome the policy.
Mobola Sagoe, CEO of Shea Origin, said the ban will “halt the massive illegal exportation of raw shea nuts… The decision could not have come at a better time.”