Amid Nigeria’s urgent quest for economic diversification, the shea industry stands out as a largely untapped asset. With global demand for natural and sustainable products rising particularly in cosmetics, food, and pharmaceuticals, the shea tree, abundant across Nigeria’s savannah belt, could become a key driver of rural development, foreign exchange earnings, and inclusive growth.
Nigeria produces an estimated 500,000 metric tonnes of shea nuts annually, largely harvested by rural women in almost all the Northern states, and other North Central such as Kwara, Niger, Benue and Oyo. However, the country captures only a fraction of the global shea market, valued at over $2 billion yearly, because it mostly exports raw nuts instead of refined shea butter or value-added products.
This model limits opportunities for job creation, industrial development, and higher export revenue. By contrast, Ghana and Burkina Faso despite having fewer shea trees, export refined butter and branded cosmetics, earning far greater returns. Nigeria must therefore reposition its shea sector as a strategic national asset.
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Shea butter is widely used in skincare, hair care, health products, and as a cocoa butter substitute in confectionery. With global consumer preference shifting to organic and ethically sourced products, Nigeria has an opportunity to build a reputation for premium, sustainably harvested shea butter.
To unlock this potential, the country must address key challenges. These include the lack of modern processing infrastructure, which affects product quality and competitiveness. Establishing rural processing hubs and cooperative-based models would improve standards and reduce losses.
Furthermore, women harvesters and processors face difficulties accessing credit and international markets. Providing targeted funding, training, and opportunities through public-private partnerships and trade fairs is essential to enable them to scale production and benefit from the global shea value chain.
This is why the recent decision by the Federal Government to ban the export of raw shea butter is both timely and strategic. The policy is designed to discourage the shipment of unprocessed commodities and encourage local value addition. However, for it to succeed, government must match the ban with heavy investment in processing infrastructure, especially in the northern states where the shea tree is most abundant, and create incentives for Nigerians to build industries around the commodity.
If implemented effectively, the ban could become a turning point for Nigeria’s shea industry, transforming it from a raw commodity exporter into a hub for refined products and branded goods with global reach. The challenge now lies in turning policy into practice, ensuring the benefits of this natural resource are felt not just in trade statistics but in the lives of the millions of rural women who form the backbone of the sector.