Agribusiness and shea nut stakeholders in Nigeria are pressing the federal government to implement a structured licensing regime that would restrict farmgate purchases to certified agents. This request comes in the wake of President Bola Tinubu's recent decision to extend the ban on raw shea nut exports for another year, which is aimed at enhancing domestic processing capabilities, boosting value addition, and improving the livelihoods of communities involved in shea production. The ban has been extended from February 26, 2026, to February 25, 2027, with the intention of fostering a more sustainable and profitable shea industry in Nigeria.

Nigeria is currently one of the largest producers of shea nuts globally, contributing approximately 350,000 metric tonnes annually, which accounts for about 40% of global supply. However, despite its significant production capacity, Nigeria earns less than one percent of the $6.5 billion global shea products market, which underscores the need for improvements in domestic processing and market access. Industry stakeholders expressed support for the government's directive, emphasizing that establishing a licensing framework for buyers, as well as standardizing and grading products, would be critical steps towards increasing the competitiveness of Nigerian shea products in the global market.

The stakeholders highlighted the importance of consistent policy implementation to protect pickers and ensure fair compensation for their work. By restricting purchases to licensed buyers, the government can help mitigate the exploitation of local farmers and improve the overall economic landscape for shea-producing communities. This initiative could lead to a more structured market environment and enhance the long-term viability of the Nigerian shea industry, while also contributing to the country's overall economic growth through increased value generation in the shea sector.