The Centre for the Promotion of Private Enterprise (CPPE) has raised concerns over the sharp decline in shea nut prices following the recent export ban, warning that the policy is endangering rural livelihoods and undermining investor confidence in Nigeria’s agricultural sector.
According to the CPPE, prices of shea nuts have dropped by as much as 30 percent since the restriction was introduced, leaving farmers and traders grappling with unsold stock and dwindling incomes. The group noted that shea nut production, a vital economic activity across parts of northern Nigeria, supports thousands of smallholder farmers, women’s cooperatives, and local processors.
“The ban has created significant market distortions. Farmers are unable to access international buyers, and local demand is not strong enough to absorb the supply. This has triggered a price crash that threatens the survival of many rural households,” the CPPE explained in a statement issued on Sunday.
The organisation also cautioned that the policy could erode investor confidence in Nigeria’s non-oil export sector at a time when the government is seeking to diversify the economy. “Export restrictions discourage long-term investment in value chains. They send the wrong signal to both local and foreign investors who are critical to the growth of agribusiness,” it added.
Shea nuts, valued globally for their use in cosmetics, pharmaceuticals, and food production, represent one of Nigeria’s key non-oil exports. Industry experts fear that if the current ban persists, producers may be forced out of business, while regional competitors such as Ghana and Burkina Faso could gain market share at Nigeria’s expense.
The CPPE urged the Federal Government to reconsider the export prohibition and adopt policies that encourage local processing while still allowing access to international markets. It stressed that a balanced approach was necessary to protect farmers’ livelihoods, promote value addition, and sustain Nigeria’s competitive position in the global shea industry.
