Group decries $500 million investment loss over ban on export of shea butter.
Group decries $500 million investment loss over ban on export of shea butter.
Segun Oladipupo
Freight Forwarders and relevant stakeholders in the maritime industry have raised the alarm over the loss of over $500 million to the recent ban on exportation of shea butter in Nigeria.
At a press conference on Monday, the National Coordinator of Save Nigeria Freight Forwarders, Importers and Exporters Coalition (SNFFIEC), Dr. Osita Chukwu Patrick said that the reversal of the pronouncement has become necessary because of its suddenness.
According to Osita, about 500 containers of the banned item already processed, loaded in containers and moved to the export terminal are trapped at the terminal because there was no prior notification to the exporters.
Osita added that over 100 containers of members of his group are currently lying waste at the port over the new government policy.
The group Coordinator who faulted the Ill advised government decision to ban the item, called for a review of the ban adding that at least the directives should have been on six months notice before implementation and enforcement by government agencies at the ports.
Osita maintained that “since the processes of importing have become rather tenuous, export should be encouraged, this ban looks more like a kick in the gut. In the interim, Nigeria may be loosing about $100 million from this ban and may be loosing over $500 million in the nearest future if this ban is not reversed, this is disastrous, condemnable and total a set back on our economy.
“The major problem that most exporters have with the ban is that they find it so sudden as they claim to have mortgaged their properties in order to invest in the exporting of this commodity. Most of the processed containers of this nut are said to be stuck at the export terminal while ships are waiting to take them to their destinations.
Osita advocates that the executive order which placed the ban on the export of shea nuts should be suspended if not rescinded as people’s investments are trapped at the terminals. He noted that the stakeholders may be forced to resort to litigation.
According to the freight forwarder, the federal government is aggressively campaigning on how to boost Nigerian products overseas in furtherance to promote and boost foreign exchange but lamented the decision to ban shea butter seed will have negative effects to the nation’s economy.
Speaking on the ripple effects of the ban, Osita reiterated that both job loss and foreign exchange earnings would drop, while pointing out that a long queue of export laden containers of shea butter are laying fallow at the Export Process Terminal at Lilypond , Ijora Lagos .
He urged President Bola Tinubu to revisit the directive ordering the ban noting that Nigerian exporters of shea butter would loss their investment over avoidable decision by the government.
Recall that the Nigerian government, under President Tinubu, issued a directive on August 26, 2025, banning the export of raw shea nuts for a temporary period of six months citing the need to boost local processing and the shea butter industry.
The ban is also aimed at transforming Nigeria from a raw shea nut exporter to a global supplier of refined shea butter and other shea derivatives for economic transformation, industrial growth and global market positioning.
He advised the government that “the processed or about to be processed containers of the nut should be allowed to be exported and a fair amount of time given to exporters to prepare themselves for any ban if the government insists on introducing the ban”.
The Coalition warns that Nigerian shippers stand to lose a staggering $500 million due to the sudden halt ; a devastating blow to one of the country’s most vibrant foreign exchange earners.
“Now, those shipments sit stranded at the Lilypond Export Process Terminal with ships waiting idly offshore — a costly logjam draining resources and damaging investor confidence.
Osita condemned the government’s decision as “ill-advised” and “a kick in the gut,” calling on President Bola Tinubu to urgently revisit and reconsider the ban. He blasted the lack of prior notice, describing the ban as a “total setback” to Nigeria’s burgeoning export economy and warning that sudden moves like this sabotage efforts to boost Nigerian products on the global stage.
Highlighting the wider fallout, the freight forwarder cautioned that the ban threatens massive job loss and a sharp decline in vital foreign exchange earnings. The ripple effects, he stated could sink sectors tied to the shea butter trade and dampen economic growth in the near term.
Osita warned that if the ban is not immediately reversed or at least eased with a grace period for exporters to adjust, affected stakeholders may have no choice but to resort to legal action. He urged that current shipments be allowed to proceed unhindered and that clear timelines be given for any future restrictions.9
