MARKET NEWS
Kwara to commission 50-tonne shea butter factory - DAILY TRUST
By Mumini AbdulKareem, Ilorin
Kwara State is set to commission a 50-tonne Shea butter processing factory in Kaiama, described as the second largest in Nigeria and the biggest owned by any state government.
Governor AbdulRahman AbdulRazaq said the facility would transform shea butter production in Kwara North by putting communities at the heart of value addition and reducing post-harvest losses.
The project comes on the heels of President Bola Tinubu’s directive banning the export of raw shea nuts for six months.
The ban aimed at boosting domestic processing, creating jobs, and positioning Nigeria as a global supplier of refined shea butter and its derivatives.
“This factory is a deliberate step to stimulate local production, improve quality, and ensure value retention within Kwara North,” AbdulRazaq said in a statement on Tuesday.
According to him, “It consolidates raw material sourcing, processing, and market access locally, while directly engaging women farmers and nut pickers who dominate the sector.”
“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.
The project, he said, exemplifies backward and forward integration as “it combines raw material sourcing, processing, and market access in one locality.”
Daily Trust reports that Nigeria produces about 40 percent of global shea nuts but controls only 1 percent of the $6.5 billion global shea market.
The Federal government projections indicate the country could earn up to $300 million annually in the short term under the new policy, with earnings expected to rise tenfold by 2027.
Kwara and Niger states are the leading hubs of shea nut trees in Nigeria, with Kwara North alone credited with more than 250,000 naturally producing trees spread across 6,000 hectares of land.