As global demand for shea butter is worth about $10 billion and is projected to grow to over $30 billion by 2020, Nigeria’s sheanut producers have capacity to earn foreign exchange, reduce poverty, empower women, and generate employment through the establishment of Small and Medium Enterprises (SMEs) across the country.
Despite its high demand across the world, Nigeria still lose
s about N345 billion ($2.2 billion) to smuggling of exportable shea produce to the global market yearly. The increasing smuggling of the produce through Nigeria’s various borders to neighbouring countries like Benin Republic from where it is exported to Europe and the United States (US) is due to its high demand, resulting from the recognition of potency.
With 16 states producing it, Nigeria which is the world largest producer of sheanut with 75 per cent has the capacity to produce 325,000 metric tonnes of sheanut yearly, which is capable of getting a huge chunk of the global market worth about $10 billion.
Unfortunately, despite its economic viability, most farmers in Nigeria are yet to appreciate its significance resulting to huge wastage of the commodity as it is often thrown away by rural farming communities of the North due to ignorance of its economic value. Chief Executive Officer of Nigerian Export Promotion Council (NEPC), Mr. Segun Awolowo, said recently that Nigeria should leverage its nature-endowed comparative advantage in shea butter production and export to replace oil as major revenue earner.
According to him, strong sector development can lead to poverty reduction, women empowerment, employment generation through the establishment of small and medium industries and the earning of foreign exchange. As the world recognises the usage of the commodity, Food and Drugs Administration in America passed that 5 per cent of shea butter must be in every of their food, from chocolate to every other thing. Shea butter is now commonly used in the production of cocoa butter equivalents or improvers (up to 5 per cent content by weight is allowed under EU regulations) in chocolate, other confectionaries and margarine, creating even larger markets for shea products.
Speaking on how to stop the smuggling of shea produce in Nigeria, Managing Director of Universal Quest/Coordinator, Community of Agricultural Stakeholders of Nigeria (CASON), Sotonye Anga, said that if government can beef up security personnel at the various borders, especially Shaki and Shinawo axis, which are the major areas where a lot of the shea products disappear out of Nigeria, the incidence of smuggling the produce would be reduced drastically.
He added: “Right now, what is happening in the area of smuggling is huge because a lot of our sheanuts move into Cotonou, Benin Republic, illegally through our porous borders into several countries and we are losing income. So setting up processing facility, encouraging farmers and strengthening them will guarantee prosperity to sheanut producers across Nigeria.” As part of efforts to reduce the incidence, he explained that government must develop and encourage processing of sheanut as a means of providing revenue for farmers across the states producing it.
He said: “Across the sheanut belt, which falls across Kebi, Niger, Kwara and Oyo mainly, are women that depend on this sheanut for their livelihood and these women get the sheanut from the tree and make a little shea butter for their household use, including vegetable oil, and they are heavily dependent on the shea product, which means it would be locally utilised and the final product could be exported. It also means that women who depend on sheanut would have guaranteed income by way of improving the value of the sheanut they are going to sell.”
He explained further: “When you go to some axis across Malete and Sawo in Kwara State, all of these places have a lot of sheanut. This is the season of shea, from July to August, and the amount of wastage is also high. So we need to deliberately build capacity for farmers to appreciate sheanut better, to appreciate the value better and to put it into better use. That way, their income would increase and be better.
“So setting up processing facility to add value to sheanut is the best option Nigeria should pursue as a country. We need to help these men coming to form little associations so that they would be able to access credit facility to enable them to set up their own sheanut processing facilities so that they can aggregate their collection at various points and take it to processing centre to add value. Because when you add value, you get better money, better income. That is where we need to really strengthen and when we do this, it would be better for our people.”