The Nigerian Commodity Exchange (NCX) has unveiled a comprehensive Shea Value Chain Transformation Framework aimed at increasing domestic processing, improving market transparency, and tripling the value generated from Nigeria’s vast shea resources.
The framework projects that processing 30 per cent of raw shea nut production, equivalent to about 120,000 metric tonnes, could yield approximately 40,000 metric tonnes of shea butter based on a 3:1 conversion ratio. This shift is expected to increase export revenues by between two and three times current levels.
NCX estimates that while current value capture in the sector stands at about $200 million, future revenues could rise to between $400 million and $540 million annually through a combination of processed shea butter exports and remaining raw nut exports.
Industry data identifies several challenges limiting Nigeria’s ability to maximize value from its shea resources, including fragmented informal trade, weak price discovery mechanisms, inadequate processing capacity, poor traceability
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