The Emerging Shea Butter Industry

The Chief Executive Officer of Nigerian Export Promotion Council (NEPC), Mr. Segun Awolowo, has suggested that Nigeria should leverage on its natural resource advantage in shea butter production and export to replace oil as a major revenue generator.

Speaking at a conference in Abuja, Awolowo said global demand for shea butter was estimated at $10 billion, with a projection  hitting $30 billion by 2020, He noted that if the product is fully harnessed and quality control and standardization of processing is addressed, Nigeria might take a chunk of the huge global market.

With sixteen (16) Shea-producing states in Nigeria, the agricultural sector’s value addition to the economy in the form of inclusive and sustainable growth and wealth creation will be huge. He stressed that if Nigeria becomes a competitive global player in shea production it would give rise to the current industrialization and reduce poverty level.

These are not empty claims as Nigeria literally sits on a shea butter reserve. At the last count, for instance, Nigeria produces 325,000 Metric Tonnes (MT) of shea nut, making her the world’s largest shea nut producer, according to the Food and Agriculture Organization (FAO).

Unfortunately, despite its capacity to earn foreign exchange, empower women, reduce poverty and generate employment, Shea production and export remains untapped until recently with the establishment of the PZ Nasara Shea-Butter processing facility in Niger State.

The United States government, through the United States Agency for International Development (USAID) has also stepped up its support for Nigeria’s Shea industry. USAID does this through the Global Shea Alliance, which includes leading retail brands, Shea butter manufacturers, research institutions, ministries, regulatory bodies and Shea butter producers and exporters.

With these recent developments, it would seem like the fall in oil prices and the dwindling economic situation of the nation has only encouraged us to look towards other sectors that were previously abandoned.