Lagos, Sept. 14, 2025 – The Centre for the Promotion of Private Entreprise [CPPE] in Lagos has called a strategic, inclusive, and market-friendly implementation of the ban on export of shea nuts.
The federal government recently imposed a six month ban on export of raw shea nuts to accelerate domestic value addition and support Nigeria’s industrialization drive.
Dr Muda Yusuf, the Director-General of CPPE, gave the advice in a statement on Sunday.
He said while the goal is laudable, the instantaneous implementation of the ban had created severe disruptions in the shea nut along the value chain.
The expert said the hasty implementation of the ban was hurting farmers, aggregators, exporters, and logistics provider, adding that a phased implementation of the policy would safeguard investor confidence, preserve hard-won gains in non-oil exports, and ensure inclusive, market-driven growth.
He also said a market-friendly implementation of the policy would safeguard investor confidence, preserve hard-won gains in non-oil exports, and ensure inclusive, market-driven growth.
The CPPE boss said the abrupt implementation of the policy had caused market disruptions and price collapse, stressing that shea nut prices had fallen by over 30% since the ban.
He said the ban had made existing export contracts to face potential default, thereby exposing exporters to legal and reputational risks.
Yusuf said there was also the likelihood of causing loan defaults since many exporters rely on bank financing for procurement and aggregation.
He said the abrupt policy shifts had sent negative signals to investors who might perceive higher policy risk in Nigeria.
Yusuf also said the progress made in non-oil exports, through which over $3 billion receipts were made in the first quarter of 2025, could be reversed, while thousands of jobs in cultivation, aggregation, logistics, and trade in shea nuts could also be lost.
The CPPE boss, therefore, advised the federal government to adopt a phased transition approach in the implementation of the policy by introducing clear timelines for phasing out raw exports to allow businesses to adjust operations.
He said government should allow fulfillment of existing export contracts to prevent defaults and maintain Nigeria’s credibility.
Yusuf also suggested that government should encourage competitiveness of local processing by address structural challenges – power supply, logistics, infrastructure, financing – to enable processors to purchase raw materials at market prices and still compete internationally.
He suggested that government should promote innovation and efficiency in processing rather than reliance on artificially low input costs.
Yusuf said government should also protect primary producers by ensuring that farmers capture fair market value for their produce, sustaining rural livelihoods and incentivizing production and avoid policies that force primary producers to subsidize processors indirectly.
He also advised government to institutionalize stakeholder engagement by establishing regular consultative platforms involving farmers, processors, exporters, and financiers.
