Nigeria opens Africa’s largest shea butter refinery with US$1.3M investment

NIGERIA – Africa’s biggest shea butter refinery has opened in Niger State, following a N2 billion (US$1.3 million) agreement between Niger Foods and Salid Agriculture Nigeria Limited.

The facility, run by Salid Agriculture Nigeria Limited, sits in Kudu, Mokwa Local Government Area, and can process 30,000 metric tonnes annually.

Governor Mohammed Umaru Bago led the inauguration and described the project as a turning point for the state’s economy. He said the government will use natural resources to create jobs, attract investors and expand Niger’s role in global shea production.

“The state government has allocated 10,000 hectares for the cultivation of shea butter trees, ensuring a consistent supply of raw materials and making Niger State an attractive and secure environment for investors,” Bago said.

“We have entered into an N2 billion (US$1.3 million) Memorandum of Understanding between Niger Foods and the company to provide direct employment opportunities for women and youth involved in shea nut harvesting and supply.”

Company plans for expansion

Ali Saidu, CEO of Salid Agriculture, said the facility is the largest of its kind in Africa and will soon expand its capacity to 400 metric tonnes per day. He confirmed that the company also plans to establish a modern refinery for shea butter.

“Our vision includes securing sustainable raw material sources, preserving biodiversity, and empowering local communities through long-term land stewardship,” Saidu explained.

He added that the firm is working with GIZ and DFID through the PROPCOM MAIKAIFI project to help local pickers, most of them women, form structured cooperatives.

NEXIM Bank financed the project. Its CEO, Abba Bello, said Nigeria produces about 60 percent of global shea nuts but has lacked large-scale processing facilities. He added that the bank will support four more plants across the country.

Export ban and regional push

Nigeria recently announced a six-month ban on raw shea nut exports, effective August 27, 2025. The policy seeks to shift the country from exporting raw nuts to selling processed shea butter, oil, and related products.

Officials expect the move to increase annual revenue from 65 million US dollars to 300 million dollars, with projections of 3 billion dollars by 2027.

The government framed the ban as a way to support industrial growth and create more opportunities in rural areas, where women dominate shea nut collection.

Nigeria joins Burkina Faso, Mali, Togo, Ivory Coast, and Ghana, which have also restricted raw shea exports to build stronger domestic industries.

With Africa’s largest refinery now running in Niger State, leaders say the country has taken a major step toward claiming a larger share of the 6.5 billion dollar global shea market.

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