Al-Mustapha moves to set up shea butter factory in Kano days after export ban’s announcement

Days after President Bola Tinubu announced suspension of raw shea nut exports, Kano businessman,  Hadi Al-Mustapha, has unveiled plans to set up a shea butter processing plant in the state.

The president had last week approved a six-month moratorium on raw shea nut exports to curb informal trade, strengthen local processing, and stimulate Nigeria’s shea industry.

The temporary restriction, already in effect, is projected to help the sector generate up to $300 million annually and will be reviewed after expiry.

Al-Mustapha, who is the Chief Executive Officer of Harris Industries, said the move has motivated him to invest in the sector.

“I intend to take advantage of the ban because it is a very good policy that will encourage local processing and create jobs,” Al-Mustapha said.

The entrepreneur noted that the decision has encouraged him to establish a processing plant and called on government to sustain the policy to attract more investors.

“I urge other businessmen to invest in the shea butter value chain to create jobs for our people instead of exporting the raw product,” he stated.

Shea nuts, which are used in cosmetics and confectionery, have also been restricted from export in other West African countries. Since the ban took effect last week, the price of the nuts has dropped by about 33 percent, according to Rildwan Bello, CEO of Lagos-based consultancy Vestance, which monitors agricultural commodity prices.

The policy has also received support from state governments. Kwara State Governor AbdulRahman AbdulRazaq announced plans to establish a 50-ton shea processing facility in Kaiama to boost economic activity in the region.

“Locating the factory within Kaiama puts the people at the centre of local Shea production, ensures local ownership of benefits, such as job creation, reduced post harvest losses, and value retention in Kaiama,” the governor said in a statement on Tuesday.

“This project exemplifies backward and forward integration as it combines raw material sourcing, processing and market access in one locality.”

Kwara and Niger states are among the major shea-producing regions in Nigeria. Kwara North alone is credited with over 250,000 naturally growing shea trees across 6,000 hectares of land.

(WHISTLER)