Nigeria’s Shea Nut Export Ban; A Case of Faulty Trade Policy? -By Mujeeb Dada-Kadri.
Nigeria produces nearly 40% of the world’s shea nuts but earns only about 1% of the $6.5 billion global market (BBC). Nigerian Government under the leadership of President Bola Ahmed Tinubu introduced a measure against raw Shea butter export in 2025 and the ban further extended to February 25, 2027.
The rationale behind the ban is to deepen and encourage value-added exports and enable Nigeria to catch up with the multi-billion dollar value-addition Shea butter sector. Processed shea products are mostly used in food manufacturing, cosmetics, pharmaceuticals etc. The intention is positive but how productive and pragmatic in global trade dynamics. Do we have the technical know-how to drive industrial processing in the short or midterm?. Do we have the capital base to compete with established global producers?. Can we play dominant role in shea butter processing industry without export ban?.
CONTINUE READING THIS ARTICLE BELOW AFTER THESE IMPORTANT NOTICES
Log in to primsol.lawpavilion.com and store.lawpavilion.com to enjoy the best E-journals, textbooks, and many more. For further enquiries/assistance, send an email to customercare@lawpavilion.com or call 08050298729
The questions raised above should have been determining key issues leading the Shea nut trade policy, importantly, the question “if we can play dominant role in shea processing global industry without export ban?”. The answer to that important question is a big YES.
It is also fundamental to note that Under Article XI of the General Agreement on Tariffs and Trade (GATT) 1994, “WTO members cannot use quantitative restrictions such as bans, quotas, or permits to limit exports or imports. The goal is to keep international trade open and predictable.” I am forced to agree with WTO and exceptions allowing export ban regardless of my support for “strategic protectionism”.
Moreover, it is evident that the highest exporting countries of processed raw materials also lead in primary agriculture produce and have sustained global trade through such primary exports. Countries such as United States, Brazil, Netherlands, Canada, China etc lead in primary agriculture exports without unwarranted export bans. These are 2023 top exporters of primary agriculture produce by export value; USA ($178.7 billion), Brazil ($166.5 billion), Netherlands ($134.1 billion), China ($98.9 billion), Germany ($81.1 billion) according to Investopedia.
The myth that has crippled Africa’s trade policy is promoting export bans not for local sufficiency but for “processing and value-addition”. The point is, Nigeria can attain prosperity by leading in primary produce exports and value-added exports. Both can be priotized. Canada leads in Wheat, Barley. Brazil: Dominates raw and primary agricultural exports, specifically being the world’s top supplier of soybeans, raw coffee beans, sugar, and beef. India leads in rice, spices, cotton and tea.
Primary agriculture produce exports is the nerve of global industrial processing sector and infact serve as a tool of geopolitical advantage. What Nigeria should have priotized are; (a)Infrastructural supports for Agricultural clusters/agri-industrial parks, (b)Strategic and conditional financial supports for Agri-exporters priotizing 40% value-added production (c) Incentive-backed ratings for top Agro-processing stakeholders and (d) Special supports and funding for industrial automation researches and market adoption of alternative processing equipments. Nigeria can thrive in both worlds of primary produce exports and value-added exports. The latest policy cannot achieve its aims with the existing realities.
Dada-Kadri is a Lawyer and Economic Policy Analyst.
FOR SUPPORT TO BARRISTERNG BLOG, DONATE TO: 1. NAIRA ACCOUNT: 1023046978 - UBA Â 2. USD ACCOUNT: 5090743566 - FIDELITY BANK PLC
Call Bridget Edokwe Esq on 08060798767 or send your articles to barristerngblog@gmail.com
A Must-Have for Every Lawyer: Order Justice Alaba Omolaye-Ajileye’s Latest Books on Electronic Evidence Today: To order your copies, click the link below and order directly from the author:
https://velvety-cendol-7387ed.netlify.app/
SHOP NOW
The Price is 10k for Hard Copy less freight and 5k for E- Book copy in the Store of the Website. https://buokorie.com/store/ To access the hard copy, Call - 07087622283
