Shea nut prices rebound after brief decline
Shea nut prices in Nigeria are stabilizing after a brief dip that followed the Federal Government’s ban on raw exports. Prices, which fell sharply in the days immediately after the announcement, have steadily rebounded as domestic processors stepped in to absorb supply. Before the policy was announced, prices averaged around N850 per kilogram. In the […]
Shea nut prices in Nigeria are stabilizing after a brief dip that followed the Federal Government’s ban on raw exports.
Prices, which fell sharply in the days immediately after the announcement, have steadily rebounded as domestic processors stepped in to absorb supply.
Before the policy was announced, prices averaged around N850 per kilogram. In the days immediately after, they dropped to about N570 per kilogram as traders and middlemen adjusted to the new market realities.
By mid-September, prices had recovered to N710 per kilogram, and by the end of September, hovered between N710 and N800, indicating renewed confidence and a growing balance between supply and demand. As of today, the average market price for shea nuts stands at approximately N1,000 per kilogram, reflecting both recovery and emerging stability.
President Bola Ahmed Tinubu said the export ban was aimed at spurring local value addition as a pathway to sustainable economic growth.
Despite providing almost one-third of the world’s shea supply, Nigeria accounts for less than 1 percent of the US$6.5 billion global market due to the longstanding export of raw nuts with minimal domestic processing.
The Federal Government said the restriction would boost economic resilience, protect jobs, and strengthen businesses by securing raw materials for more than 20 local processing plants, many of which had been running below 30 percent capacity.
Sadiq Kassim, Public Relations Officer of the Nigeria Agribusiness Group (NABG), said the policy brings the long-sought stability needed for investment and growth.
“Before now, the unregulated export of raw nuts drove unpredictable price swings and squeezed processors out of the market. With the ban in place, raw materials are staying in-country, market prices are becoming more stable, and we can run our factories closer to full capacity,” he said. “This means better income for rural women, steady demand for farmers, and a stronger foundation for Nigeria’s shea value chain.”
He added that the direction aligns with the 30 percent Value Addition Bill, championed by the Raw Materials Research & Development Council (RMRDC) and passed by the Senate in July 2025. Now awaiting concurrence in the House of Representatives and presidential assent, the bill mandates that no raw material of Nigerian origin be exported without at least 30 percent domestic processing.
The Director-General of RMRDC, Prof. Nnanyelugo Martin Ike-Muonso, noted that “without an incentive structure to build capacity across our value chains, inefficiencies persist, prices rise, and opportunities are lost. This is why we are championing the 30 percent value addition bill before export, to protect local industries, create jobs, and put Nigeria first.”
A Local Buying Agent (LBA) based in Ibadan, Mr. Olaolu Ajide, also commended the government’s decision, saying:
“Stopping the exportation of raw shea nuts has a positive effect on the economy. The government must enforce the ban to ensure local industries can grow and expand the value chain to create more jobs for our people.”
The Federal Ministry of Industry, Trade and Investment is leading follow-up engagements with processors, traders, and farmer groups to ensure smooth implementation. To complement this, the Presidential Food Systems Coordinating Unit (PFSCU) will conduct a rapid assessment next month across the five key shea-producing states. The exercise aims to generate updated data, identify bottlenecks, and ensure continued alignment between government and industry in advancing Nigeria’s industrialization agenda under the Renewed Hope and Nigeria First Economic Policy frameworks.