Shea Nut Export Ban Threatens Non-Oil Export Gains, Rural Livelihoods – CPPE
The Centre for the Promotion of Private Enterprise (CPPE) has warned that the Federal Government’s six-month ban on raw shea nut exports could undermine Nigeria’s non-oil export momentum, destabilize rural livelihoods, and weaken investor confidence if not carefully managed.
In a policy brief issued on Sunday, CPPE Chief Executive Officer, Dr. Muda Yusuf, said that while the ban is aimed at promoting local value addition and supporting industrialisation, its abrupt implementation has triggered severe disruptions across the shea nut value chain.
According to Yusuf, shea nut prices have already plunged by over 30 percent since the announcement, leaving farmers and aggregators at a disadvantage, while exporters face risks of defaulting on existing international contracts.
“This policy threatens thousands of jobs in cultivation, aggregation, logistics, and trade, and risks penalising primary producers to the benefit of processors,” he stated.
He cautioned that such sudden policy shifts send negative signals to both local and foreign investors, noting that Nigeria’s recent progress in diversifying away from oil—evidenced by over $3bn in non-oil export earnings in the first quarter of 2025—could be reversed if policy credibility continues to weaken.
The CPPE further warned that the export ban may expose exporters to legal and reputational liabilities, while also increasing the risk of loan defaults as many businesses rely on bank financing for procurement and aggregation.
To address the challenges, the organisation recommended a phased transition framework that allows businesses to adjust to new rules without collapsing existing contracts. It also urged government to strengthen the competitiveness of local processors by addressing structural bottlenecks such as poor power supply, inadequate logistics infrastructure, and limited access to financing.
Yusuf emphasised that local value addition must be driven by innovation and efficiency rather than reliance on artificially cheap raw materials, adding that farmers should be guaranteed fair market value to sustain rural livelihoods and incentivise continued production.
He also called for regular stakeholder consultations involving farmers, processors, exporters, and financiers to improve policy predictability and transparency. “Policy stability and stakeholder engagement are essential to achieving a win-win outcome for farmers, processors, and the broader economy,” the CPPE chief stressed.
The CPPE concluded that while domestic value addition remains a critical pathway to economic diversification, policies must be strategic, inclusive, and market-friendly to deliver sustainable growth and protect vulnerable groups within the value chain.
Shea Nut Export Ban Threatens Non-Oil Export Gains, Rural Livelihoods – CPPE is first published on The Whistler Newspaper
