Chairman of the Alliance for Economic Research and Ethics Ltd/GTE, Dele Kelvin Oye, has called on the Federal Government to clarify its recent ban on shea nut exports, warning that while the policy direction toward local processing is laudable, hasty implementation without adequate consultation could disrupt investments, threaten livelihoods and weaken trade commitments.
In a statement issued yesterday, Oye said the policy, aimed at industrialising Nigeria’s shea sector and unlocking an estimated $6.6 billion potential, is a strategic step that aligns with the President’s long-term industrialisation goals.
He noted, however, that sudden reversals without a clear transition plan risk creating uncertainty for exporters, processors, and financial institutions tied to existing contracts and investment programmes.
He stressed the need for phased implementation backed by measurable milestones and transparent timelines. He said a clear communication strategy was necessary to help stakeholders understand the benefits of the policy and guide them on how to take advantage of it.
He charged the government to support financing, workforce training, technical assistance and upgrading of processing facilities, saying these would be vital to ease the transition.
The former chair of the Organised Private Sector of Nigeria (OPSN) observed that a staged rollout would prevent disruption to local and international contracts, particularly as many exporters and processors are in a six-month capital recovery and project ramp-up phase.
Given the perishable nature of agricultural products and Nigeria’s limited processing capacity, Oye urged the government to consider purchasing unsold stock and raw output for resale to processors. Such intervention, he said, would sustain the sector through the transition while discouraging smuggling and boosting compliance.
He pointed to experiences from Ghana, Malaysia, Indonesia and India, where gradual policy shifts supported by the government helped producers to upgrade operations and meet new standards without abruptly ending existing engagements.
Similar measures in Nigeria, he argued, would protect vulnerable players in the value chain and ensure revenue growth. Oye also stressed the importance of maintaining Nigeria’s reputation in global markets. While the country hopes to export processed shea butter and related products, he said, bilateral engagements with trade partners remain crucial, as international buyers value stable and predictable policies.
A phased approach, he explained, would give processors and exporters time to invest in refining, quality control, and packaging to meet global standards while keeping current contracts intact.
He urged the government to define a clear transition period with targets for processing capacity, quality benchmarks, and export diversification, while ensuring poor and vulnerable stakeholders are not left behind.
Reaffirming the group’s commitment to the sector, Oye said: “We must approach policy changes with robust monitoring, digital market intelligence, stakeholder feedback, and multi-agency cooperation to ensure the interests of all stakeholders are taken into account. The Alliance looks forward to collaborating with government and industry partners to create a sustainable and thriving shea sector that benefits all Nigerians.”
