The National Association of Shea Products of Nigeria has warned that the Federal Government’s recent temporary ban on the exportation of raw shea nuts could trigger massive wastage and financial losses in the industry if not carefully managed. The ban, announced on August 26, 2025, aims to promote value addition, curb smuggling, and transform rural economies.

NASPAN President, Mohammed Kontagora, commended the policy as strategic for boosting local processing and job creation, while speaking in Abuja on Friday. However, he expressed concerns about the sudden introduction of the ban, which has left aggregators with huge stocks of shea nuts worth billions of naira in limbo.

“While members appreciate the benefits and prospects of this pronouncement, the sudden announcement of the policy has created serious dislocations for aggregators,” Kontagora said.

The association has appealed to the Federal Government to grant a 90-day window to enable traders and aggregators to discharge existing export contracts worth billions of naira.

“Aggregators with evidence of legally binding contracts made before the policy change should be allowed to complete those transactions under a regulated framework,” Kontagora added.

Despite the challenges, Kontagora believes the ban represents a paradigm shift in the regulation of shea resources, which account for more than half of the world’s shea stock. Nigeria is home to nearly 58 per cent of the world’s shea trees, and the policy could reposition the country as a global leader in shea competitiveness. The ban is expected to boost Nigeria’s shea value chain, generating around $300m annually in the short term.

NASPAN has rolled out a list of proposals to ensure the success of the ban, including the creation of a Shea Marketing Board to regulate pricing and support local processors, and grants to support local processors to boost domestic processing capacity.

Others include the passing of the National Council on Shea Bill to provide a framework for the industry’s growth and development, strengthening border policing to prevent smuggling and protect local industries, and integrating shea into climate management programmes to promote sustainable practices and environmental conservation.