The Alliance for Economic Research and Ethics Ltd/Gte has urged the Nigerian government to proceed carefully with its new ban on raw shea nut exports, cautioning that rushed implementation could jeopardise investments, livelihoods, and the country’s global trade reputation.
In a statement signed by the Alliance’s Chairman, Hon. Dele Kelvin Oye, the group praised the government’s focus on local value addition in the $6.6 billion shea sector, aligning with President Bola Tinubu’s industrialisation vision and the potential to uplift rural economies and empower women.
However, Oye warned: “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.”
To minimise disruption, the Alliance recommended a phased, consultative approach with clear government communication. They emphasised the need for financing support, technical assistance, and workforce training to enable processors to upgrade facilities and meet export standards.
Recognising the limited processing capacity and perishable nature of shea nuts, the group called for government intervention to purchase unsold raw stock to ease pressure on farmers and traders.
Drawing on successful examples from Ghana, Malaysia, and Indonesia, Oye stressed that “Nigeria must adopt a managed transition period with measurable milestones to protect vulnerable players in the value chain.”
He concluded, “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.”
