Ghana has reopened its flagship shea nut processing plant in the north of the country, just as Nigeria imposes a ban on raw shea nut exports in a bold bid to industrialise its agriculture sector.

Shea butter is widely used in cosmetics as a moisturiser or lotion. It is edible and is used in food preparation in some African countries. The continent produces about 1.76mn tonnes of raw shea annually, according to the Nigerian Export Promotion Council.

The PBC Shea Factory in Buipe, Ghana commissioned in 2012 but dormant since 2019, has resumed operations under President John Dramani Mahama’s administration, reports Citi News. 

The facility, with a processing capacity of 150,000 tonnes a year valued at over $118mn, is expected to create jobs and support Ghana’s 24-hour economy policy.

“This is a critical moment for Ghana,” Managing Director Alhaji Abubakari Abdul-Mumin is quoted as saying. “Across Africa, countries have banned the exportation of shea nuts, and it is crucial for Ghana to follow suit to prevent a rush for the nuts that could negatively impact our local industry.”

Board Chairman Rev. Aaron Fant said the factory’s sustainability hinges on a reliable supply of raw materials. “Our appeal to the government is to ban the exportation of raw nuts so that we can add value by processing them and exporting semi-finished or finished products. This will ultimately create jobs, boost the economy, and yield better returns for our shea,” he said.

Nigeria draws the line

While Ghana debates export restrictions, Nigeria has already acted. President Bola Ahmed Tinubu’s government last week approved a six-month suspension of raw shea exports to protect local processors.

“We are not closing doors, we are opening better ones,” Vice President Kashim Shettima said when announcing the move, Business Day reported. “Today we plant the seeds of an industry that will yield fruit for decades to come; for our women, for our economy, and for Nigeria’s place in global trade.”

Nigeria produces nearly 40% of the world’s shea but captures just 1% of a global market worth $6.5bn, according to government data. Each year, more than 90,000 tonnes of raw nuts leave the country informally while processors - many employing rural women - operate at less than half capacity.

“Shea has the potential to become Nigeria’s untapped goldmine,” said Eniola Akindele of the Presidential Food Systems Coordinating Unit. Confectionery giants are increasingly turning to shea as a substitute for cocoa, raising the crop’s profile beyond cosmetics.

Farm leaders welcomed the move. Kabir Ibrahim, president of the Nigeria Agribusiness Group, called it “a pivotal moment for agricultural industrialisation. For decades, Nigeria has given away raw shea only to buy back butter at inflated prices. Now the balance is set to shift.”

Burkina Faso, Mali and Togo have long restricted raw shea exports, leaving Nigeria as the last open door for foreign buyers. Analysts say Abuja’s action brings West Africa into rare policy alignment and signals a bid for greater bargaining power in the $6.5bn global trade.

“The synchronised action across West Africa is a powerful signal to the global market,” a regional stakeholder told AFP. “Nigeria should not just be a supplier of raw materials but a manufacturer of finished goods. That is how Africa gets real bargaining power.”

Ghana’s dilemma

For Ghana, the stakes are high. The relaunch of the Buipe factory has been hailed as a breakthrough for jobs and women’s empowerment, but without decisive action on raw nut exports the gains may prove fleeting.

Abdul-Mumin warned that Ghana risks losing its competitive edge unless it mirrors Nigeria’s policy. “It is crucial for Ghana to follow suit,” he said.

The contrast between Accra’s hesitation and Abuja’s bold move underscores the growing competition within West Africa’s shea belt. For Accra, the decision now is whether to protect its processors or continue supplying raw nuts to global buyers.