Market data suggest shea nut prices in Nigeria are stabilising after a brief dip following the Federal Government’s ban on raw exports.

Prices, which fell sharply days after the announcement, have steadily rebounded as domestic processors step in to absorb supply.

Insights show that average prices are approaching pre-ban levels, signaling growing confidence in the policy.

Market data shows that shea nut prices in Nigeria are stabilising after a brief dip following the Federal Government’s ban on raw exports.

Before the policy was announced, prices averaged around N850 per kilogramme.

Following the announcement, prices plunged by about 33 per cent to N570 per kilogramme as traders and middlemen adjusted to the new market realities.

From mid-September, prices have rebounded to between N710 and N800 per kilogramme or up by over 30 per cent from the post-ban low, indicating renewed confidence and an emerging balance between supply and demand.

As at yesterday, the average market price for shea nuts stood at approximately N1,000 per kilogramme, which is nearly 18 per cent above the pre-ban price.

The policy reflects President Bola Ahmed Tinubu’s Nigeria First Economic Policy, which prioritises domestic value addition as the pathway to growth.

Though the country supplies more than a third of the world’s shea, it captures less than one per cent of the $6.5 billion global market because raw nuts have historically been exported with minimal processing.

By securing raw material for over 20 local plants — many of which had been operating below 30 per cent capacity — the ban is strengthening industries, safeguarding jobs and boosting economic resilience, experts have said.

“This policy gives us the stability we’ve long needed to plan, invest, and expand,” said the spokesperson of Nigeria Agribusiness Group (NABG), Sadiq Kassim.

“Before now, the unregulated export of raw nuts drove unpredictable price swings and squeezed processors out of the market. With the ban in place, raw materials are staying in-country, market prices are becoming more stable, and we can run our factories closer to full capacity.

This means better income for rural women, steady demand for farmers and a stronger foundation for Nigeria’s shea value chain,” he added.

The direction aligns with the 30 per cent Value Addition Bill, championed by the Raw Materials Research and Development Council (RMRDC) and passed by the Senate in July 2025.

Now awaiting concurrence in the House of Representatives, the bill mandates that no raw material of Nigerian origin be exported without at least 30 per cent domestic processing.

The Director-General of RMRDC, Prof. Nnanyelugo Martin Ike-Muonso, said: “Without an incentive structure to build capacity across our value chains, inefficiencies persist, prices rise, and opportunities are lost. This is why we are championing the 30 per cent value addition bill before export — to protect local industries, create jobs and put Nigeria first.”

A local buying agent (LBA) in Ibadan, Olaolu Ajide, commended the government’s decision to ban the exportation of shea nuts.

He said: “Stopping the exportation of raw shea nuts has a positive effect on the economy. The government must enforce the ban to ensure the local industries can grow and expand the value chain to create more jobs for our people.”

The Federal Ministry of Industry, Trade and Investment is leading follow-up engagements with processors, traders and farmer groups to ensure smooth execution.

To complement this, the Presidential Food Systems Coordinating Unit (PFSCU) is to lend support by facilitating a rapid assessment next month across the five key shea-producing states and among processors and traders.