Agribusiness and shea nut stakeholders have called for a structured licensing regime that will restrict farmgate purchases to certified agents, as President Bola Tinubu extends the ban on raw shea nut exports for another year.
President Tinubu, on Wednesday, approved the extension of the ban from 26 February 2026 to 25 February 2027 to deepen domestic processing, boost value addition, and improve livelihoods in shea-producing communities. He also directed the adoption of the export framework of the Nigerian Commodity Exchange and withdrew all waivers for the direct export of raw shea nuts.
Nigeria produces about 350,000 metric tonnes of shea nuts annually, representing roughly 40 per cent of global supply, but earns less than one per cent of the $6.5bn global shea products market.
In separate interviews with The NGGOSSIPS, stakeholders welcomed the directive and called for the licensing of buyers, the standardisation and grading of products, and consistency in policy.
The Director of Sustainability and Climate Adaptation at the National Shea Products Association of Nigeria, Elizabeth Nwankwo, stated that the ban would only achieve its objectives if backed by a transparent and enforceable licensing framework.
Nwankwo welcomed the extension of the ban, saying, “NASPAN acknowledges and supports the Federal Government’s decision, approved by President Tinubu, to extend the ban on the export of raw shea nuts to deepen domestic value addition, strengthen processing capacity, and improve livelihoods across shea-producing communities.”
She warned that the absence of a structured licensing regime had historically led to unregulated buying at the farmgate level, quality deterioration, price distortions affecting women pickers, smuggling, and limited traceability.
Nwankwo proposed, “Only licensed agents may purchase shea nuts at the field and community level. Licensed Buying Agents must be registered members of NASPAN, undergo mandatory training on quality, grading, storage, and pricing ethics, and adhere to minimum quality and pricing guidelines. Direct farmgate buying by unlicensed entities, including foreign buyers, should be prohibited.”
She added that aggregators and processors must also be licensed based on storage capacity, quality handling facilities, installed capacity, and technology standards to enable the government to target incentives and track processing absorption capacity.
Nwankwo, also the Managing Director of Oklan Best, affirmed that “licensing is the operational backbone that will translate policy intent into measurable outcomes, ensuring compliance, quality assurance, inclusive growth, and sustainable industrialisation.”
She maintained that licensing should link to mandatory quality training and structured engagement with women pickers through cooperatives, noting that over 90 per cent of actors at the origin are women.
On border controls, she proposed that only licensed exporters and aggregators should move shea products across borders, with declared volumes to curb informal leakage and improve revenue collection.
Similarly, the President of the Nigeria Agribusiness Group, Kabir Ibrahim, said value addition remained central to successful agribusiness decisions.
He said, “Value addition is the dictum of successful agribusiness decisions, and it is always a welcome development. Mr President should be congratulated on the one-year extension. In the final analysis, it is going to be a better proposition for the producers and farmers, so I believe it is the right decision in the circumstances.”
Ibrahim urged the implementation task force to prioritise quality and standardisation across the value chain.
He said, “The task force should ensure that the nuts are standardised and graded as well as of high quality to enhance the value accruable to the exporters and the integrity of the overall programme for sustainability.”
The NABG president added that certification of shea products as Halal-compliant would position Nigeria to tap into the $7.7tn global Halal investment market.
On the directive that excess raw shea nuts be exported exclusively through the NCX framework, Ibrahim said, “An institutional framework to formalise and regulate the export of shea nuts is definitely helpful to both the exporters and the government. The nationally accredited commodity exchange framework safeguards the honour and integrity of the exports, exporters and the government; it is therefore prudent to ensure compliance.”
Meanwhile, the Chairman of the Agricultural and Allied Group of the Lagos Chamber of Commerce and Industry, Tunde Banjoko, supported the ban but warned against policy inconsistency.
He said, “I know that the ban is to promote local processing, and I think it is a good idea. The intent is good, but let’s be consistent. Investors will be wary if policies change after they have committed resources.”
Banjoko added that consistent implementation would build investor confidence and encourage long-term investments in the processing and export of value-added shea products.
