WHAT IS NIGERIA DOING??
So last week, my mind got casually blown! According to the BBC, Nigeria will be imposing a 6-month ban on the export of Shea nuts. Shea butter is used globally to save the skin of Black people (and plenty of others) around the world through a whole range of skin, hair, and beauty products. What really shocked me, though, is that Nigeria accounts for over 40% of the world’s Shea production. Forty percent!
Almost half of the world’s Shea nuts come from this one country, and yet Nigeria only takes home 1% of the $6.5bn (£4.8bn) global market. That’s a travesty. It sounds crazy, but it’s not too surprising when you remember the same story plays out with oil and other raw materials: we export the base ingredients, while others capture the real value.
Let’s get into this!
KEY TAKEAWAYS
- Nigeria produces over 40% of the world’s Shea nuts but captures only 1% of the $6.5bn global market value.
- Most of the profit lies in processing the nuts into Shea butter, which is done outside Africa, leaving producers with crumbs while global brands cash in.
- Nigeria’s temporary 6-month export ban is a pushback against this imbalance, aiming to shift more value back to the source.
THE SHEA NUTTINESS OF THIS
Forgive the pun, but you know I had to! For those wondering why my jaw’s on the floor, let me break it down. Shea nuts are the key ingredient in Shea butter. And Shea butter? That’s the secret sauce in a massive range of products: body butters, hand creams, face moisturizers, lip balms, lipsticks, body lotions, anti-aging creams, stretch mark cream, the list goes on. And that’s just body and beauty products. Add in hair care, bath products, baby products, medicinal uses, and more, and basically, if you’re human and use stuff on your skin, you’ve probably used Shea butter.
And if you’re like me and have ever slathered yourself with Vaseline’s cocoa butter lotion, then yup, you’ve been Shea’d. It’s that important.
Now, here’s the kicker: the total Shea butter market is estimated at $2.4 billion. Yet despite producing 40% of the raw nuts, Nigeria only captures 1% of the market’s value. So yes, of course, they’re pausing exports for a while. Something funky has clearly been going on, and nobody’s stepped in until now.
It’s like this: imagine you provide the bread, tomato, chicken, and cheese for the world’s greatest sandwich. Someone else adds the lettuce, then eats the burger and leaves you crumbs. You’d want to fight someone over that, right? Well, Nigeria’s doing the macroeconomic version of that fight: hitting pause with an export ban.
THE SHEA BELT
Shea trees are native to sub-Saharan Africa, specifically across 19 countries that make up the so-called “Shea Belt.” These are regions with hot temperatures (24–38ºC) and rainfall between 500–1,400mm. In other words: yet another case of Africa holding the resources that fuel global wealth, but only seeing a fraction of the profits.
Why? Back to that BBC story. The Shea Belt produces the majority of Shea nuts, but not the butter. The value lies in the processing, which is usually done elsewhere. The raw nuts are exported cheaply, companies abroad refine them, jack up the price, and pocket the profits. Business-savvy? Sure. But what’s shocking is how long this setup has gone unchallenged, with no real push to redirect profits to the producers.
The Shea Belt has been wrapped tightly around the world’s waist for a long time. It’s refreshing to see someone finally trying to loosen that buckle.
Looking forward to speaking next week!