The Centre for the Promotion of Private Enterprise (CPPE) says the federal government’s sudden ban on raw shea nut exports is hurting farmers and creating uncertainty for investors.
The government recently placed a six-month ban on the export of raw shea nuts.
The aim is to force more local processing, create jobs, and support industrialisation. Nigeria produces about 40 percent of the world’s shea.
Muda Yusuf, CPPE chief executive officer, said while the idea of processing shea locally is good, the way the ban was introduced is the problem.
According to him, “the sudden ban has disrupted the shea value chain, hurting farmers, middlemen, exporters, and transporters. Prices of shea have already dropped by over 30 percent since the ban, and many farmers are losing income.”
Yusuf added that exporters are also at risk of breaking contracts with foreign buyers, which could damage Nigeria’s reputation in global markets.
He warned that bank loans taken by players in the shea business may also default because of the shock.
“The policy may end up penalising farmers just to favour processors, instead of creating shared benefits. Abrupt policy shifts also send bad signals to investors and discourage people from putting money into Nigeria’s non-oil exports,” he said.
