The Alliance for Economic Research and Ethics has urged the Federal Government to provide clear transition plans and sector-wide consultations before enforcing its ban on raw shea nut exports.
The Chairman of the trade group, Dele Oye, warned in a statement that immediate policy reversal without adequate transition measures would undermine ongoing commitments, investment plans, and the livelihoods of exporters and processors.
He said, “We must commend the government’s policy direction on Nigerian shea nut industrialisation, which will encourage local processing and value addition to a potential $6.6bn industry.
“It is a positive and strategic step toward industrialisation, rural transformation, and gender empowerment. However, 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.”
Oye, a past Chairman of the Organised Private Sector of Nigeria and former President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, called for a clear communication strategy and phased policy implementation. He maintained that clear communication and phased implementation are essential to prevent disruption of existing contracts.
He added that government agencies must provide information on financing, workforce training, technical assistance, and upgrading of local processing facilities.
Oye noted, “A staged implementation will avoid disruption and losses on existing local and international shea nut contracts. For many exporters and processors, this six-month window is a critical phase for capital recovery and project ramp-up.”
He stressed that the government should intervene by purchasing current raw output and unsold stock to support processors, avoid smuggling, and sustain compliance. He described such an intervention as “a profitable venture for the government” that would protect vulnerable stakeholders in the shea value chain.
Citing case studies from Ghana, Malaysia, Indonesia, and India, Oye emphasised that a consultative, phased approach to similar policy shifts had allowed producers to adjust, upgrade, and meet new standards without abruptly terminating existing engagements.
He maintained that Nigeria’s success in shea nut industrialisation depends on mitigating risks of capacity constraints and supply gaps while sustaining international trade relations.
Oye appealed to the government to define a transition period with explicit targets for processing capacity, quality standards, and export diversification.
“The Alliance believes in the potential of Nigeria’s shea industry and its capacity to contribute significantly to our economy. But we must approach policy changes with robust monitoring, stakeholder feedback and multi-agency cooperation,” he added.
