CPPE to FG: Salvage shea nut industry, revisit 6 months ban

By Gabriel Ewepu

ABUJA – THE Centre for the Promotion of Private Enterprises, CPPE, yesterday, called connected the national authorities to urgently revisit the six months prohibition placed connected earthy shea seed exports successful bid to salvage the manufacture from collapse.

The CPPE, successful a connection signed by the Chief Executive Officer, Dr. Muda Yusuf, besides alerted the national authorities of the antagonistic awesome the prohibition had sent to investors successful the assemblage arsenic their investments had been negatively impacted,  arsenic they were not consulted earlier the prohibition was announced by the Tinubu-led administration.

Yusuf said:  “The instantaneous implementation of the prohibition has created terrible disruptions successful the shea seed worth concatenation which players, ranging from farmers, aggregators, exporters to logistics providers person been adversely affected and are successful heavy pains due to the fact that of the abrupt pronouncement.’’

According to him, CPPE is saying specified argumentation from the authorities should beryllium “for a phased, consultative modulation model to safeguard capitalist confidence, sphere hard-won gains successful non-oil exports, and guarantee inclusive, market-driven growth.

“Nigeria holds important imaginable successful the planetary shea seed market, accounting for an estimated 40% of planetary production. Moving up the worth concatenation done section processing could make jobs, overseas speech and concern capacity.

“However, argumentation credibility is crucial: abrupt bans connected exports with contiguous effect present uncertainty, heighten risk, and undermine capitalist confidence, deterring concern not conscionable successful shea but crossed the broader non-oil export sector.”

He said the announcement by the authorities had caused daunting challenges that had enactment stakeholders disconnected balance, having been subjected to what they ne'er envisaged.

“Market Disruptions and Price Collapse: Shea seed prices person fallen by implicit 30% since the ban, eroding incomes of farmers and aggregators.  Existing export contracts look imaginable default, exposing exporters to ineligible and reputational risks.  Loan defaults loom large, arsenic galore exporters trust connected slope financing for procurement and aggregation.

“Investor Confidence astatine Risk: Abrupt argumentation shifts nonstop antagonistic signals to investors who whitethorn comprehend higher argumentation hazard successful Nigeria. The advancement made successful non-oil exports, implicit $3 cardinal successful the archetypal 4th of 2025, could beryllium reversed if assurance declines.

“Employment and Social Impact: The prohibition threatens thousands of jobs successful cultivation, aggregation, logistics and commercialized successful shea-nuts.

“The argumentation efficaciously penalises superior producers to payment processors, creating a zero-sum scenario, alternatively than a shared-growth model.’’

The CPPE boss, portion acknowledging that national government, coming retired to spot a prohibition connected shea-nut exports, which is intended to accelerate home worth summation and enactment Nigeria’s industrialisation drive, made immoderate salient recommendations arsenic a panacea oregon alternate to the ban.

“Adopt a Phased Transition Approach: Introduce wide timelines for phasing retired earthy exports, allowing businesses to set operations.  Permit fulfillment of existing export contracts to forestall defaults and support Nigeria’s credibility.

“Enhance Competitiveness of Local Processing: Address structural challenges—power supply, logistics, infrastructure, financing—to alteration processors acquisition earthy materials astatine marketplace prices and inactive vie internationally.

“Promote innovation and ratio successful processing alternatively than reliance connected artificially debased input costs.

“Protect Primary Producers: Ensure farmers seizure just marketplace worth for their produce, sustaining agrarian livelihoods and incentivising production.  Avoid policies that unit superior producers to subsidise processors indirectly.

“Institutionalise Stakeholder Engagement: Establish regular consultative platforms involving farmers, processors, exporters, and financiers.  Improve argumentation predictability and transparency to physique capitalist trust,’’ the CPPE brag said further.

The station CPPE to FG: Salvage shea seed industry, revisit 6 months ban appeared archetypal connected Vanguard News.