The Centre for the Promotion of Private Enterprise (CPPE) has issued a strong warning to the Federal Government regarding its immediate six-month ban on raw shea nut exports.
In a recent policy brief, the CPPE acknowledged the government’s goal of promoting domestic value addition but argued that the abrupt implementation has caused significant disruptions, negatively impacting farmers and the broader export value chain.
The CPPE, led by its Chief Executive Officer, Dr. Muda Yusuf, stated that while the policy’s objective is laudable, its instant effect has already led to a 30% drop in shea nut prices.
“This has created severe financial hardship for farmers and aggregators, and put existing export contracts at risk of default.” He said.
The brief highlights that such sudden policy shifts can erode investor confidence and threaten the progress made in Nigeria’s non-oil export sector, which recorded over $3 billion in the first quarter of 2025.
The CPPE’s brief outlined several key challenges posed by the ban to include a collapse in prices, hurting the incomes of primary producers and putting exporters at risk of loan defaults.
Other effects highlighted by the Policy think-thank include: “Abrupt policy changes send negative signals to investors, who may view Nigeria as a high-risk environment for business.”
“The policy threatens thousands of jobs in the shea nut value chain, from cultivation to logistics, effectively penalizing primary producers to benefit processors.”
To mitigate these challenges, the CPPE recommended a strategic, phased transition approach.
It urged the government to allow for the fulfillment of existing export contracts and to set clear timelines for the ban. The brief also called for structural reforms to enhance the competitiveness of local processing, such as addressing challenges in power supply and logistics.
Dr. Yusuf emphasized the need to protect primary producers by ensuring they receive fair market value for their produce, preventing a scenario where they are forced to subsidize processors.
The CPPE also recommended institutionalizing stakeholder engagement through regular consultative platforms to improve policy predictability and build trust.
The CPPE further stressed that achieving local value addition must be done strategically and inclusively.
“A phased approach, combined with structural reforms and stakeholder collaboration, would ensure a “win-win outcome” for all participants in the shea nut value chain and contribute to sustainable economic diversification.” Dr Yusuf stated.
