We must commend the government’s policy direction on Nigerian Shea Nut Industrialisation
which will encourage local processing and value addition to a potential $6.6bn industry. It is a positive and strategic step toward industrialization, rural transformation, and gender empowerment.
It aligns with the president’s long-term industrial policy goals to key into Africa’s regional value chains.
While we recognize and commend the administration’s commitment to value addition, we caution that 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.
We need to draw attention to the potential risks of poor implementation of a good policy. We hereby seek clarification and direction from the Mr President to ensure that his good policies are not poorly executed.
The first step with be a clear communication strategy which will inform the stakeholders on how the policy will help them and how they can take advantage of the policy.
A phased implementation plan with measurable milestones and a transparent timeline can be achieved through multi-stakeholder consultation.
Communication and Information on financing, workforce training, technical assistance, upgrading local processing facilities and other options available to support the transition process by relevant government agencies is vital.
Staged implementation to avoid disruption/ losses on existing local and international shea nut
contracts. For many exporters and processors, this six-month window is a critical phase for capital recovery and project ramp-up.
For Nigeria to succeed in Shea Nut Industrialisation, the policy must mitigate the risk of capacity constraints and supply gaps. Given the perishable nature of agriculture products and the limited Shea Nut processing capacity, Government will have to step in to purchase all the current raw output and unsold stock. Then government can sell to willing processors.
The success of other countries implementing a nation first Industrialsation approach has been
benchmarked on government support.
This government purchase support will be a welcome intervention for the informal sector by
providing robust transition support, avoid smuggling, improve compliance and revenue
collection. It is also profitable venture for government.
For International trade relations, Nigeria still hopes to export processed Shea Nut Butter and
products to the same export markets. For this reason, sustaining Nigeria’s standing in global
markets, bilateral engagements particularly with partner countries seeking stable predictable
policy environments is important.
Why do we need a phased consultative approach? A staged timeline gives processors, exporters,
and financial institutions time to invest in upgrading refining, quality control, and packaging to
meet export standards. It will preserve and grow existing commitments. A managed transition
keeps current contracts intact while guiding industry stakeholders toward higher-value activities.
Case Studies: There are existing case studies from Malaysia, Indonesia, India and closer home in Ghana.
Ghana’s planned approach to similar policy shifts thereby allowing producers to adjust, upgrade,
and meet new standards without abruptly terminating existing engagements.
Therefore, we hereby appeal for government to define a transition period with explicit targets
for processing capacity, quality standards, and export diversification while protecting ongoing
contracts and poor vulnerable stakeholders in the value chain.
Conclusion
The Alliance for Economic Research and Ethics LTD/GTE believes in the potential of Nigeria’s
shea industry and its capacity to contribute significantly to our economy. However, we must
approach policy changes with robust monitoring, digital market intelligence, stakeholder
feedback and multi agency cooperation thereby ensuring that the interests of all stakeholders are
taken into account.
Hon. Dele Kelvin Oye
Chairman Alliance for Economic Research and Ethics LTDGTE.
Past Chairman Organized Private Sector of Nigeria (OPSN)
Honorary Life Vice-President & 22nd National President of the Nigerian Association of
Chambers of Commerce Industry Mines and Agriculture (NACCIMA).
