Nigeria’s Shea Industry Reset: How Businesses Can Adapt and Grow

31 March 2026

If you’re part of Nigeria’s shea industry, the landscape has shifted again. The federal government has extended the ban on raw shea nut exports through February 2027.

Waivers that previously allowed direct exports are gone, and now, any surplus production must pass through the Nigerian Commodity Exchange (NCX). For everyone along the value chain, the time for waiting is over.

At DHL, we partner with agricultural exporters every day. Here’s what this change means on the ground, and how your business can seize the opportunities ahead.

Disruption Creates Opportunity

Nigeria produces between 350,000 and 500,000 tonnes of shea nuts annually, accounting for nearly 40% of global supply. Yet the country sees just 1% of the US$6.5 billion global shea market. Why? Because the real value comes from processing; raw nuts are exported, and most of the profit is made elsewhere.

Processed shea butter can sell for 10 to 20 times more than raw nuts on international markets. Buyers in the cosmetics, pharmaceutical, and food manufacturing sectors are looking for traceable, ready-to-use products, not raw commodities. Nigerian businesses that focus on processing are moving closer to where the value is created.

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Processors: Time to Scale Up

For processors, this is a moment of opportunity.

Supply that once left the country unprocessed is now available for domestic transformation. This means more throughput, more exports, and a stronger position in global markets.

But growth brings new challenges. Processing volumes will rise faster than many facilities are built to handle. The companies that invest now in better infrastructure, rigorous quality control, internationally recognized certifications, and export-ready packaging will be the ones to capture market share as global buyers adjust their sourcing strategies.

Other West African countries, Burkina Faso, Mali, Côte d'Ivoire, and Togo, have taken similar steps, prompting international procurement teams to rethink their supply chains. Getting your logistics right is essential. That means robust cold chain management where needed, precise export documentation, and a logistics partner who understands agricultural compliance.

Exporters: Rethink Your Product Mix

If your business relied on exporting raw shea nuts, the game has changed. The NCX is now the only legal channel for raw exports, and it brings stricter traceability and documentation requirements than informal routes ever did.

The smart move is to pivot towards exporting processed shea butter. This requires changes to packaging, documentation, handling, and buyer relationships, but it also opens the door to higher-value markets. Exporters who adapt early will be in a stronger position as supply tightens across the region.

Producers: Formalize Your Route to Market

Farm-gate prices for raw nuts have dropped since the ban, creating real challenges for producers. The government’s Livelihood Finance Mechanism aims to provide some relief, but accessing this support means engaging with formal market structures.

Producers who work within the NCX framework and connect with licensed processors and aggregators will be best positioned to benefit from new support measures. Those outside these formal channels face greater uncertainty and less influence over their market options.

Building a Future-Ready Supply Chain

Shifting from raw nut exports to processed shea butter is more than a change in product, it’s a transformation of the supply chain itself.

Processed products require different packaging, handling, customs documentation, and, in many cases, cold chain solutions.

DHL brings decades of experience moving Nigerian agricultural exports to more than 220 countries and territories worldwide. Whether you’re a processor expanding your export operations, an exporter adjusting your product line, or a producer formalizing your supply chain, we can help build a logistics strategy that supports your growth from day one.

Open a DHL business account today for tailored shipping solutions, customs expertise, and end-to-end logistics support for your agricultural exports.