Don’t Jeopardise Shea Sector, Alliance Warns FG, Seeks Clarity on Export Ban

Sunday Ehigiator

The Alliance for Economic Research and Ethics Ltd/Gte has cautioned the federal government against hasty implementation of its ban on raw shea nut exports, warning that poorly executed policies could threaten investments, livelihoods, and Nigeria’s standing in global markets.

The organisation, in a statement yesterday, signed by its Chairman, Hon. Dele Kelvin Oye, commended the government’s push for local processing and value addition in the shea industry, an industry estimated to be worth $6.6 billion. The govrnment said the policy aligns with President Bola Tinubu’s industrialisation agenda and has the potential to transform rural economies and empower women.

However, the Alliance expressed concern that the sudden policy shift without adequate transition measures or stakeholder consultation could disrupt existing export contracts, discourage investors, and expose smallholder farmers to losses.

“Immediate policy reversals without adequate transition and sector-wide consultation risk undermining ongoing commitments, investment plans, and the livelihoods of many members of our Alliance trade networks,” the group warned.

To avoid disruptions, the Alliance called for a phased and consultative rollout of the export ban, backed by clear communication from government. It urged authorities to provide financing options, technical assistance, and workforce training to help processors upgrade facilities and meet export standards.

Given the perishable nature of agricultural products and the current limited processing capacity, the group further recommended that government intervene by purchasing unsold shea stock.

Citing examples from Ghana, Malaysia, and Indonesia, where phased industrial policies were successfully implemented, the Alliance stressed that Nigeria must adopt a managed transition period with measurable milestones to protect vulnerable players in the value chain.

“We believe in the potential of Nigeria’s shea industry and its capacity to contribute significantly to the economy. But to succeed, the government must avoid disruption by adopting a transition plan that safeguards contracts, empowers stakeholders, and sustains Nigeria’s trade reputation,” Oye said.