The Centre for the Promotion of Private Enterprise (CPPE) has called on the federal government to adopt a phased transition of its six-month ban on shea nut exports, cautioning that the sudden move has disrupted value chains, eroded rural incomes, and shaken investor confidence in Nigeria's non-oil export sector.
In a policy brief, CPPE Chief Executive, Dr. Muda Yusuf, acknowledged that the policy goal of driving local value addition is laudable but warned that its abrupt enforcement has hurt farmers, aggregators, exporters, and logistics providers — many of which are small and medium-sized enterprises (SMEs).
He noted that Nigeria, which accounts for about 40% of global shea nut output, could gain jobs, foreign exchange, and industrial capacity through local processing. However, Yusuf stressed that "policy credibility is key" and that sudden bans create uncertainty that deters investment in shea and the wider non-oil export sector.
According to him, shea nut prices have already dropped by more than 30% since the ban, exposing SMEs to contract defaults, loan repayment risks, and declining incomes. The impact, he said, threatens thousands of jobs in cultivation, aggregation, logistics, and trade.
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CPPE recommended a phased framework that would:
- Allow existing export contracts to be honoured to protect Nigeria's credibility.
- Provide clear timelines for gradually winding down raw shea exports.
- Implement reforms in power, logistics, and finance to help processors remain competitive.
- Encourage innovation in processing rather than reliance on cheap raw inputs.
- Ensure farmers and SMEs earn fair value while sustaining rural livelihoods.
- Create regular stakeholder engagement platforms for farmers, exporters, processors, and financiers.
Yusuf emphasised that government should avoid policies that "indirectly force primary producers and SMEs to subsidise processors." Instead, he said, a consultative transition that balances inclusiveness, competitiveness, and policy stability will protect rural incomes while enabling sustainable value addition in the shea industry.
