Alliance for Economic Research and Ethics Ltd/Gte has urged the federal government to tread carefully on its proposed ban of raw shea nut exports.
The group warned that while the idea of promoting local processing is commendable, rushing into the ban could harm existing investments, disrupt export contracts, and threaten the livelihoods of thousands of farmers and traders across the country.
Shea is a multi-billion-dollar industry, valued globally at about $6.6 billion, and Nigeria is one of the top producers. The sector is also crucial for rural economies, particularly women who dominate production and processing.
In a statement signed by its chairman, Dele Kelvin Oye, the Alliance commended the Tinubu administration’s push for industrialisation and value addition.
“The policy aligns with President Bola Tinubu’s industrialisation agenda and has the potential to transform rural economies and empower women,” Oye said.
However, the group stressed that sudden policy changes without consultation or transition measures could backfire.
“Immediate policy reversals without adequate transition and sector-wide consultation risk undermining ongoing commitments, investment plans, and the livelihoods of many members of our Alliance trade networks,” the statement read.
The Alliance recommended a phased rollout of the ban, backed by clear government communication, financing support, and technical training to help local processors meet international standards.
It also suggested that government should step in to buy unsold shea stock to protect small-scale producers, discourage smuggling, and secure supply for local processors.
Citing examples from Ghana, Malaysia, and Indonesia, the group noted that countries which adopted gradual industrial policies were able to grow their local industries without destabilising farmers and exporters.
“We believe in the potential of Nigeria’s shea industry and its capacity to contribute significantly to the economy. But to succeed, the government must avoid disruption by adopting a transition plan that safeguards contracts, empowers stakeholders, and sustains Nigeria’s trade reputation,” Oye added.
