Business is booming.

Shea nut export ban deepens rural losses, farmers count 30% price crash

 

By Faridat Salifu

Farmers across Nigeria’s shea-producing belts are reeling from sharp income losses after the Federal Government imposed a sudden six-month ban on raw shea nut exports.

The measure, aimed at boosting domestic processing, has triggered a 30 per cent fall in farmgate prices, leaving rural households struggling to recoup investments.

Nigeria contributes about 40 per cent of global shea nut output, and the crop supports thousands of smallholder farmers in the north-central region.

For many communities, shea collection and aggregation provide one of the few reliable sources of seasonal cash income. With exports now suspended, traders and cooperatives say demand has slumped, forcing producers to sell at deep discounts.

“The ban has introduced serious hardship for farmers,” said Muda Yusuf, head of the Centre for the Promotion of Private Enterprise. “Credit facilities are at risk of default, and exporters face reputational damage for failing to meet existing contracts. The livelihoods of thousands of rural women, who are at the heart of shea collection, are being undermined.”

Analysts argue that while local value addition is vital, the manner of implementation has effectively shifted the burden onto primary producers.

Farmers are unable to sell at fair market value, while processors are yet to build the capacity to absorb raw shea at scale.

Experts warn that Nigeria risks reversing gains in non-oil exports if confidence in agricultural trade collapses.

They are urging government to adopt a phased transition that protects farmers’ incomes, permits ongoing export contracts, and tackles structural barriers such as unreliable power and poor rural infrastructure that hinder competitive processing.

Agricultural groups say that without such safeguards, the ban could discourage future shea collection and production, weakening Nigeria’s position in the global market and straining rural livelihoods.

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