LAGOS, Nigeria (AP) – The Nigerian government has officially banned the export of raw shea nuts, a crucial ingredient in various cosmetic products, with the intention of establishing the country as a leading global supplier of refined shea butter and other skincare components. This immediate ban, which is set for an initial period of six months, will be subject to future review, according to Vice President Kashim Shettima.
This decision follows a trend among several West African nations, including Burkina Faso, Mali, Togo, Ivory Coast, and Ghana, which have implemented similar bans or restrictions on shea nut exports over the past two years. Shettima articulated that the ban aims to change Nigeria's status from merely exporting raw shea nuts to becoming a significant global supplier of refined shea products, including shea butter and oil.
Shettima clarified that the initiative is not an “anti-trade policy,” but rather a “pro-value addition policy” intended to secure essential raw materials for local processing factories. The intention is to enhance income and create job opportunities for rural workers. Raw shea nuts undergo pulverization and processing to create shea butter, an indispensable component in many skincare products including lotions, shampoos, conditioners, and moisturizers.
Experts emphasize the growing importance of shea butter, especially as consumers increasingly gravitate towards non-toxic skincare products. Zainab Bashir, a dermatologist based in Abuja, highlighted that shea butter is becoming one of the most vital bases for skincare.
Nigeria currently produces 40% of the world’s supply of shea nuts, yet contributes only 1% to the $6.5 billion global market for shea products. The vice president noted that the export ban, if upheld, is projected to generate $300 million in short-term revenues, with expectations of reaching $3 billion by 2027.
However, experts caution that such measures must be accompanied by significant investments to cultivate and support domestic industries. Ikemesit Effiong, a partner at SBM Intelligence, a risk advisory firm located in Lagos, commented that while the ban might indicate an awareness of a supply-gap issue, an export ban alone does little to ensure that local production is exclusively available for Nigerian processors.
The announcement of the ban seems to contradict the long-standing trade policy of Nigeria’s President Bola Tinubu, who has recently advocated for a free-market economy. Tinubu had previously removed several subsidies on essential commodities, including fuel and electricity, and had also lifted a ban on the import of various items enacted by the former government. This prevailing contradiction raises questions about the government's future economic strategies and trade relationships.
Overall, Nigeria's move to ban raw shea nut exports and shift toward refining promises significant implications for both the local economy and the global skincare market.
