Abuja, Nigeria | September 15, 2025 — The Centre for the Promotion of Private Enterprise (CPPE) has raised alarm over the sharp decline in shea nut prices following the Federal Government’s ban on its export, warning that the policy threatens rural livelihoods and could erode investor confidence in Nigeria’s agro-commodity market.
According to CPPE, farm-gate prices of shea nuts have plunged by as much as 30 percent within weeks of the ban, leaving thousands of smallholder farmers and processors grappling with mounting losses. The group noted that shea nuts, a major cash crop across northern Nigeria, serve as a vital source of income for rural households, especially women engaged in collection and processing.
“The export ban has disrupted market dynamics, created a glut in the local market, and undermined the livelihoods of producers,” CPPE stated, stressing that the policy also risks discouraging future investments in the shea value chain.
Analysts fear the ripple effects could extend to allied industries such as shea butter and cosmetics, where Nigeria had been gradually building global market share. CPPE urged the government to adopt a more balanced approach — such as export quotas, value-addition incentives, or phased restrictions — rather than an outright ban, which could trigger long-term damage to the sector.
The Federal Government had earlier defended the ban, insisting it was aimed at boosting local processing capacity and promoting value addition. But stakeholders argue that without adequate infrastructure, power supply, and financing support, domestic processors cannot absorb the surplus, leaving farmers stranded with unsold produce.
With shea nuts contributing significantly to Nigeria’s non-oil export earnings, CPPE warned that investor confidence may waver if policies appear unpredictable. “Policy consistency is key to building a strong agro-export sector. Unilateral bans only deepen poverty and discourage private investment,” the group added.
