Shea nut prices dropped by 30% after export ban – CPPE

The Centre for the Promotion of Private Enterprise (CPPE)  has disclosed that the six-month ban imposed on raw shea nut exports by the Federal Government has triggered a sharp decline in market prices, dropping by over 30%. In August, President Bola Tinubu  approved a six-month temporary ban on the export of raw shea nut to […]

The Centre for the Promotion of Private Enterprise (CPPE)  has disclosed that the six-month ban imposed on raw shea nut exports by the Federal Government has triggered a sharp decline in market prices, dropping by over 30%.

In August, President Bola Tinubu  approved a six-month temporary ban on the export of raw shea nut to curb informal trade, boost local processing, protect and grow Nigeria’s shea industry.

The government said the ban, which is with immediate effect, is subject to review on expiration and specifically aimed at boosting Nigeria’s shea value chain to generate around $300million annually in the short term.

But the CEO of CPPE, Dr. Muda Yusuf, in a statement yesterday raised the alarm over the fallout, urging the government to adopt a phased and consultative approach to avoid further damage to rural incomes and investor confidence.

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According to him, since the ban, shea nut prices have fallen by over 30% since the ban, eroding incomes of farmers and aggregators.

He said existing export contracts also face potential default, exposing exporters to legal and reputational risks.

Yusuf said the “abrupt policy shifts” send negative signals to investors, who may perceive higher policy risk in Nigeria.

He said progress made in non-oil exports—over $3 billion in the first quarter of 2025—could be reversed if confidence declines.

“The progress made in non-oil exports—over $3 billion in the first quarter of 2025—could be reversed if confidence declines. The ban threatens thousands of jobs in cultivation, aggregation, logistics, and trade in sheanuts.

“The policy effectively penalizes primary producers to benefit processors, creating a zero-sum scenario rather than a shared-growth model,” he said.

He also noted that while the policy aims to boost local processing and industrial growth, its immediate implementation has left farmers, aggregators, exporters, and logistics providers grappling with severe economic consequences.

To mitigate the damage and realign the policy with economic realities, CPPE has proposed a phased transition approach, enhancing processing competitiveness,

stakeholders engagement and protection of primary producers.

He said, “Local value addition is a critical step toward Nigeria’s economic diversification, but it must be pursued in a way that is strategic, inclusive, and market-friendly.

“A phased transition—supported by structural reforms—will protect rural incomes, sustain non-oil export growth, and ensure that processors thrive on competitiveness rather than on a regime of subsidized raw materials. Policy stability and stakeholder engagement are essential to achieving a win-win outcome for farmers, processors, and the broader economy.”