Nigeria has announced an extension of its ban on the export of raw shea nuts, effective from February 26, 2026, to February 25, 2027, as part of its strategy to promote local processing of this valuable agricultural commodity. This measure follows an initial six-month moratorium that started in August 2025, reflecting the government's commitment to strengthen the domestic shea industry and capture more value from exports. With Nigeria contributing nearly 40% of the global shea supply, the government aims to reposition the country within higher-value segments of the shea market under its broader industrialization agenda.

The shea industry is significant for Nigeria's economy, with annual production ranging from 350,000 to 500,000 tons. However, Nigeria only receives about 1% of the global market, estimated to be worth $6.5 billion. The majority of its exports are raw shea nuts, while processed products such as shea butter command prices that are 10 to 20 times higher. The new regulations prohibit direct shipment of raw nuts and require all exports to go through the Nigeria Commodity Exchange, a move designed to enhance local processing capabilities and encourage the growth of the domestic economy.

This decision underscores Nigeria's focus on localizing its agricultural value chains to maximize profits and employment opportunities. By prohibiting raw exports and mandating processing within the country, the government expects to create a more sustainable shea industry, ultimately benefiting farmers and stakeholders in the value chain. This policy shift could serve as a model for other countries rich in natural resources struggling to maintain a competitive position in global markets.