NEXIM Urges One-Year Ban Extension to Strengthen Shea Value Chain Investment

The Nigerian Export-Import Bank (NEXIM) has called on the Federal Government to extend the recently announced six-month ban on shea nut exports to one year in order to consolidate gains in domestic value addition and stimulate investment in the shea industry.

Speaking in Abuja on Tuesday at an interactive session with members of the All Progressives Congress (APC) youth wing, NEXIM Managing Director Abba Bello described the policy as a strategic measure to secure raw materials for local processors and reduce production costs.

Bello noted that although Nigeria accounts for 40–60 percent of global shea supply, the country had no industrial processing capacity until 2018.

“When we came on board in 2018, not one industrial plant was processing shea in Nigeria. Since then, we have financed four plants located in Ogun, Kano, and two in Niger State, and they are now operational,” he said.

He explained that one of the newly commissioned plants in Niger State struggled to source raw shea due to strong competition from foreign buyers who diverted the commodity to neighbouring countries for processing.

The temporary ban, he said, will ensure a stable supply chain and enable domestic processors to operate more efficiently.

“The export ban guarantees a stable supply chain for these plants and reduces input costs. I believe we will now have excess shea for local processing. However, to deepen the impact and attract further investment, we urge the government to extend the suspension to one year,” Bello added.

Beyond shea, the NEXIM chief advocated for a broader policy framework discouraging the export of unprocessed agricultural commodities.

“Let’s not stop at shea. We should begin phasing out the export of raw products across other agricultural value chains. This is how we keep jobs and wealth at home,” he said.

Bello also encouraged young Nigerians to explore opportunities in the non-oil export economy, citing agriculture, services, the creative industry, and solid minerals as underutilised growth areas.

“We are operating sub-optimally in all value chains today. With energy and creativity, young Nigerians can unlock massive export growth,” he stated.

Analysts note that an extended suspension on raw shea exports would not only protect local processors but also strengthen Nigeria’s long-term positioning in the global shea market, where demand for processed butter continues to rise.