Stakeholders at Shea Conference Discuss $3.8Bn Nigeria Export Potentials

  Wife of the Vice President, Federal Republic of Nigeria, Mrs. Dolapo Osibanjo at the Shea      Conference 2015 at Nicon Luxury Hotel, Abuja.

Stakeholders at Shea Conference organised by Shea Origin, US Aid and Bank of Industry in Abuja recently have highlighted the $3.8billion export potential of the Nigerian Shea industry.‎

The conference was geared at emphasizing and identifying the significant role of Shea in agribusiness. 

The conference also emphasized the need for standardizing and developing Nigeria’s Shea value chain as a critical arm of the nation’s non-oil export.  

The conference was organized by Shea Origin with immense support from the USAID|Nigeria Expanded Trade and Transport (NEXTT) project and Bank of Industry (BOI) in conjunction with National Shea Product Association of Nigeria (NASPAN).

The need for the conference was borne out of recent assertion by the Global Shea Alliance (a multi-stakeholder association committed to quality and sustainability of the Shea industry) that Nigeria’s estimated yearly loss to smuggling of exportable Shea produce to the global market is about N345 billion ($2.2 billion).

“This enormous loss to smuggling is undermining efforts to translate benefits of Shea production to national advantage, hence the need to standardize this arm of Nigeria’s non-oil export which can have tremendous impact on the economy and lives of rural women that are involved in Shea production” said Mrs Mobola Sagoe‎, MD/CEO of Shea Origin and Vice-President of NASPAN.  

- See more at: http://www.nigeriacommunicationsweek.com.ng/news/stakeholders-at-shea-conference-discuss-38bn-nigeria-export-potentials

INVESTMENT OPPORTUNITIES IN SHEA VALUE CHAIN

The Shea butter tree (Vitellariaparadoxa and Vitellarianilotica) is a dicotyledonous woody plant. Nigeria is the leading producer of Shea nut in the West African region. The Nigerian Government through the shea value chain is seeking to increase annual production of shea nuts to 450,000mt in 2020 from estimated 300,000mt in 2014 and shea butter to 225,000mt in 2020 from estimated 150,000mt.

The Shea is largely found in the wild in 19 States. They are as follows:Niger, Nassarawa, Kebbi, Katsina, Plateau, Kwara, Kogi, Adamawa, Benue, Edo, Sokoto, Zamfara, Kaduna, Ogun, Ondo, Taraba, Gombe, Borno, Oyo and the FCT. The average yield is about 5kg annually/tree. 

INVESTMENT WINDOWS IN SHEA:

•Shea nut is a good source of foreign exchange when exported.

•Processed into baking fat, and used also as substitutes for cocoa butter in making chocolate and other confectioneries.

•Value addition is enhanced through the production of cosmetics, skincare products - moisturizing cream, anti-ageing treatments.

•The shea nut cake (SNC) left after the second pressing can also be burned to produce potash for soap making or for fertilizer.

•Used in pharmaceuticals

•It can serve in soil conservation and desertification control since it grows predominantly in the North, and has deep tap root system.

•Create a business-friendly environment for the investor

Benefits of shea butter processing

Shea is an important food crop in the Sahel Region where it mostly grows. Here alternative employments opportunities are few,  and yields are unpredictable. The Shea nuts and other products from the tree provide an important part of the family income. Shea butter also acts as one of the major sources of cooking oil in areas where it grows.

  Over the past decades trade in Shea butter has been on the rise because of increased demands in the European Union, Japan, India, Canada and the United States. It is worth nothing that while importations of Shea into the European Union are both for food products and cosmetics, importations in to the USA is solely for use in cosmetics. This has had significant positive consequences on the local women who are the main stake holders (95%) in the processing of Shea. With the integration of non-governmental organizations and cooperative groups in the processing chain, women can earn higher prices for their shea products because of improved quality and quantity. For example, a kg of certified organic shea butter today sells at 2.75 USD up from 1.5 USD. This has a positive effect on the social status of the woman as she can now take part in house hold management and decision making.

    Secondly, several communities benefit from health services and insurance schemes provided by semi processing factories installed for shea processing. In addition, shea is fast becoming an export crop in many West African countries. For example, shea nuts and its products are listed among the top ten non-traditional exports of Ghana. The shea industry, still in its infant stage, is an attractive business entity earning about 30 million USD of foreign exchange for the Ghanaian national economy. This amount is expected to triple when the shea production potentials in Ghana are fully exploited. In Burkina Faso, it is the fourth most important export crop after gold, cotton and livestock and makes a contribution of about 6 million USD to the national economy. Today the shea tree is the second most important oil crop in Africa after the palm nut tree. See more Here

image credit: shea butter processor. With excerpts from 'OIL CROPS AND SUPPLY CHAIN IN AFRICA'.

The Benefits of Shea Development in Nigeria

In Nigeria, shea nuts grow on wild shea trees which are found over a wide area of the savanna zone which spreads over the Central and Northern parts of the country. Shea trees are the second largest source of vegetable oil/fat in Nigeria. Palm trees which grow in the Southern part of Nigeria are the largest source of vegetable oil/fat. All the shea nuts harvested in Nigeria come from wild species. The biggest production area is in Minna in Niger State which is located next to the Capital Abuja.

  Shea development in Nigeria may not be overemphasized. Its production may seem irregular because of the Shea tree not being domesticated, yet its benefit to the society it thrives in speak volumes in terms of the revenue it returns. the following are but a few benefits of the tree crop.

• High potential to create employment opportunities and generate income for investors, the Government and the producing communities.
• Women empowerment and poverty reduction strategies towards a better rural livelihood.
• Prepare a solid raw material base for the fast growing local and international shea based food, personal care and cosmetics industries.
• Equip the local shea butter producers with the right skills and tools to be able to compete favorably in the modern hyper- competitive global market.

Experience the power of Shea butter

Ori as the Yoruba people call it; Abubaekeas to the Igbo and Mankada to the Hausa; whatever you call Shea butter in your language doesn’t matter, because one cannot underestimate its uniqueness and importance. Shea butter is a gentle and effective moisturizer. It contains oleic acid, a saturated fatty acid, it is highly priced because it is very nourishing, as well as being gentle and easily absorbed

Shea butter is gotten from the ivory-coloured fat extracted from the nut of the Karite tree. It contains vitamin A,E and F. It offers you protection. Shea butter is mainly used in the cosmetics industry for skin and hair related products like lip gloss, skin moisturizer creams and emulsions, and hair conditioners for dry and brittle hair, unlike most expensive lotion, Shea butter is cheap and natural.

Benefits you derive from using Shea butter

· Smooth skin: Shea butter helps your skin to glow despite your skins condition; it aids the skin’s natural collagen production and prevent drying. When using Shea butter, the skin starts to soften and strengthen and wrinkle reduces dramatically.

· Moisturising: Shea butter makes it incredibly nourishing and moisturises your skin. It is used for as a remedy for dry skin and it helps protect the skin’s natural oils.

· Strengthens your hair: natural Shea butter helps your hair scalp to be oily therefore avoiding hair breakage and dandruffs. It gives your hair a healthy and beautifully look. Shea butter is one oily treatment that has been used in making shampoo and other oily treatment. It also controls the growth of the hair and restores the hair follicles and the scalp, giving birth to healthy and fast growing hair. Shea butter improves the performance of scalp and hair.

· Healing: Shea butter has the ability of healing the skin. Shea butter is helpful against different skin conditions like rashes, scars, tanning, burns, insect bites, arthritis, muscle fatigue and stings.

· Used as a baby care product: Shea butter is a natural moisturiser. Due to this, it can be used on soft and gentle skin and as a baby care product. It can be used for diaper rash and healing eczema on the skin of babies.

· As a lip care product: Shea butter contains the nutrients and moisturiser, which are helpful for summer and winter seasons. It helps us keep our lips against cold and dryness .