Nigeria’s shea industry losing billions despite global dominance – Bima

Senator Muhammad Bima Enagi has said that Nigeria supplies 35-40 per cent of the world’s shea butter but captures less than one per cent of the current $6.5 billion global market.

Speaking with journalists, Enagi warned that the market which has been forecasted to near $9 billion by 2030 is being dominated by foreign cosmetic, food and pharmaceutical companies that buy raw shea and reap the profits.

“Most companies profiting from shea as a raw material are foreign, leaving our factories out of the value chain,” he said, adding that local processors earn little from a product their country largely produces.

To change that, Enagi said he sponsored the National Shea Development Council Bill during the 9th National Assembly to push investment into local value-added processing and create a clear roadmap for the sector.

According to him, he credited the bill with helping attract investment that led to the establishment of what he called the largest shea-nuts refining plant in Niger South Senatorial District, Niger State.

The senator said Nigeria’s factories have an installed processing capacity of about 160,000 tonnes but operate at only 35-50 per cent capacity, a shortfall which he described as the sector’s main operational challenge.

Enagi said the Federal Government aims to generate more than $300 million every quarter from exports of processed shea products adding that President Bola Ahmed Tinubu’s recent ban on raw shea-nut exports is part of efforts to close the gap and boost local processing.

“If Nigeria positions shea as a commodity with real comparative advantage, it will transform the economy of Niger South, the country’s leading shea-nut producing district,” he said.

Enagi also announced he will seek re-election to the Senate in 2027 to continue pushing for a developed, locally-driven shea industry.