Stakeholders seek increased share of $6.5 billion global shea butter market

Stakeholders seek increased share of $6.5 billion global shea butter market

Stakeholders are calling for urgent reforms to help Nigeria capture a greater share of the $6.5 billion global shea butter market. Although Nigeria produces nearly 40 percent of the world’s shea nuts, it earns less than one percent of the total value generated in the global shea industry. Experts describe this as a long-standing structural weakness, as most of Nigeria’s shea output is exported in raw form rather than processed into higher-value products.

The controversy centers on the Federal Government’s six-month ban on the export of raw shea nuts, introduced in August 2025 to promote local processing and value addition. The policy was designed to strengthen domestic industries, create jobs—especially for women who dominate the shea workforce—and help Nigeria retain more wealth from its agricultural resources. However, exporters argue that the ban has backfired. They say it has led to the loss of long-standing international buyers, logistical bottlenecks, storage shortages, and reduced competitiveness in the global market.

Industry stakeholders explain that transitioning from exporting raw nuts to processed shea butter is complex because the buyers for each product are different. Exporters have struggled to secure new markets while also facing limited local processing capacity, weak infrastructure, poor logistics, and financing challenges. Many international buyers have shifted to other West African countries and Asia, making it harder for Nigeria to regain lost market share.

While some government officials defend the ban as a bold and necessary step toward industrialisation, the Ministry of Industry, Trade and Investment has promised to review the policy after consulting stakeholders. Analysts agree that Nigeria’s main challenge is not production but inadequate domestic processing infrastructure and inconsistent policy signals. They stress that to truly benefit from its production dominance, Nigeria must adopt a balanced strategy—gradually easing restrictions while investing in processing capacity, infrastructure, financing, and stable policies—to move up the value chain and compete effectively in the expanding global shea industry.

   The Nation, 24 Feb 2026