Govt pushes shea processing to boost exports

Nigeria is intensifying efforts to transform its shea industry, aiming to become a leading producer of high-value shea products rather than just exporting raw nuts. Currently, Nigeria accounts for over 40 percent of global shea nut production but captures less than six percent of the global shea butter market. This disparity highlights the significant value lost through exporting raw commodities with minimal local processing.

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I heard about this engagement and, coming from somewhere and going somewhere else, I felt it was important to stop by and reiterate the significance of this initiative to the entire economy.

A recent stakeholders' forum at the Nigeria Commodity Exchange (NCX) in Abuja focused on strategies to restructure the shea value chain. The goal is to improve market transparency, support domestic industrialization, and ensure Nigerian processors and pickers benefit more equitably. Data presented revealed that while Nigeria produced approximately 359,000 tonnes of shea nuts in 2024, its earnings from processed products sold internationally remain disproportionately low.

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The Shea story is essentially a pilot and a case study for the Renewed Hope Agenda and what we intend to achieve with commodities, with value addition and with the mandate of the Federal Ministry of Industry, Trade and Investment.

Minister of Industry, Trade and Investment, Jumoke Oduwole, described the shea initiative as a practical example of the Federal Government’s strategy to build an economy driven by value addition and profitable exports. She indicated that the transformational framework being developed for shea could serve as a blueprint for other commodities like cashew, sesame, and ginger. Oduwole confirmed that this initiative aligns with President Tinubu's "Renewed Hope Agenda" to enhance domestic value creation and generate profitable exports.

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I am glad that the transformational framework that we have all agreed upon through stakeholder engagements and validation exercises will deliver a situation where this economy and the shea value chain become an example of what we can do with cashew, sesame, ginger and several other commodities through value addition and processing.