The Economic Community of West African States (ECOWAS) is experiencing one of the most turbulent moments in its 50-year history. The withdrawal of three member states and a series of governance crises—most recently the attempted coup in Benin in December 2025—have led observers to question the organization’s future viability. Yet ECOWAS’ long-term relevance will depend less on crisis management than on its ability to move beyond a narrow, trade-liberalization model and advance the integrated regional value chains (RVCs) envisioned in its Vision 2050 strategy. This paper illustrates this claim by examining the prospects for a regional shea-nut value chain amid the disruptions created by Nigeria’s recent ban on raw shea-nut exports.
ECOWAS, Regional Value Chains, and Structural Limits
Within ECOWAS policy frameworks, agricultural RVCs are central to deeper integration. They strengthen connections across production, processing, and markets; support upgrading and competitiveness; and enable more inclusive growth. By contrast, ECOWAS’ historical emphasis on trade liberalization has not generated strong interdependence or collaboration. Many member states continue to pursue unilateral strategies, often viewing one another as economic competitors rather than partners. Persistently low levels of intra-regional trade reflect this dynamic, shaped by limited diversification and weak productive capacity across West African economies.
Nigeria’s ban on raw shea-nut exports provides a useful lens to assess how an integrated RVC could transform this pattern by creating shared incentives and strengthening collective economic decision-making.
Nigeria Bans Raw Shea-Nut Exports
In late August 2025, President Bola Tinubu announced an immediate six-month suspension of raw shea-nut exports, aiming to stimulate domestic processing and increase local value capture. Shea butter is a highly valued global commodity, especially in cosmetics. However, the announcement—issued without stakeholder consultation—caused prices to fall by roughly 30 percent within weeks, harming farmers and aggregators. The Nigerian Centre for the Promotion of Private Enterprise warned that the abrupt policy shift disrupted supply chains and threatened investor confidence.
Nigeria produces roughly 350,000 metric tons of shea nuts annually—about 40 percent of global output—yet has a processing capacity of only 160,000 metric tons and uses just 35–50 percent of that capacity because of infrastructure and supply constraints. Other major producers include Benin, Burkina Faso, Côte d’Ivoire, Ghana, Mali, and Togo. Despite Nigeria’s size, the shea sector remains fragmented and under-industrialized across the region.
Nigeria’s Rationale for the Ban
Nigeria outlined six objectives for the ban:
- Value addition and growth: Nigeria exported large quantities of raw shea nuts but captured a very small portion of the value in the global shea products market. The government wants local farmers to capture more of that value by processing into shea butter, oil, etc. So far, Nigerian officials estimated that local producers only accounted for 1 percent of the global market share of $6.5 billion. According to them, the new policy could generate $300 million annually in the short-term with better value-addition.
- Strengthening industrial capacity: Ensuring adequate local raw-material supply would help processors operate closer to full capacity, aligning with the Zero Oil Plan’s diversification goals.
- Reducing informal cross-border leakage: Nigeria seeks to reduce losses caused by informal trading and smuggling. Nigeria’s minister of agriculture and food security estimated recently that 90,000 metric tons, close to 25 percent of the annual shea nuts production, is lost to informal and illegal trading with neighboring countries.
- Empowering rural women: About 2.2 million Nigerian women rely on shea-nut collection and processing for their livelihood.
- Aligning with regional peers: Countries like Burkina Faso, Ghana, Mali, and Togo already restrict raw-nut exports; the ban avoids positioning Nigeria as an outlier.
- Increasing export revenue through refined products: Climbing the value chain would improve revenue and reduce dependence on raw-material exports.
Although defensible domestically, these unilateral measures have serious regional spillovers. ECOWAS therefore has a strategic opportunity to mitigate disruption and convert the crisis into a catalyst for collective action.
Six Reasons Why ECOWAS Should Intervene
Several international actors, like the World Business Council for Sustainable Development (WBCSD), have been calling for the establishment of an inclusive RVC for the shea nut industry. Additionally, in spite of the fact that African leaders are often reluctant to trade with each other, both ECOWAS and the African Union consider that inclusive cross-border value chains must be the main drivers of economic integration.
In the subsequent sections, we advance six arguments to substantiate the claim that the development of a regional shea nut industry constitutes a strategic opportunity for the regional organization to enhance its institutional relevance. Beyond its economic potential, such an initiative carries significant symbolic importance as a vehicle for regional integration and collective self-reliance. By fostering shared economic interests, it may also contribute to rebuilding mutual confidence among member states. Ultimately, this endeavor offers ECOWAS a viable pathway to restore its credibility and reaffirm its legitimacy in the aftermath of the recent crisis that resulted in the withdrawal of three Sahel member states.
Preventing cross-border smuggling and trade distortions
One of the reasons why the Nigerian authorities decided to ban the export of raw shea nuts was to prevent cross-border smuggling, responsible for approximately 20 percent of the revenue losses incurred every year. Ironically, however, instead of halting the illegal exports, the decision fueled it. Indeed, the few operational Nigerian processing units could not handle the sudden influx of unsold nuts. An approach focused on increasing the number of joint storage and processing units across West Africa would reduce leakage while protecting neighboring markets. ECOWAS is one of a few actors capable of coordinating investment and technical assistance to expand processing capacity across member states, creating higher-value exports and jobs region-wide.
Protecting regional supply chains and exporters —West Africa supplies a big share of the global shea nuts output. If Nigeria’s move collapses raw-nut trade or causes supply shocks, buyers and processors elsewhere will be affected. By opening transit corridors, ECOWAS action could preserve predictable flows that keep processors running.
Turning informal work into quality employment —The shea industry employs millions of informal workers, mostly-female, engaged in nut collection and primary processing. Through coordinated regional investment, training, and support for cooperatives and small enterprises, ECOWAS could help formalize these roles into safer, better-paid, and more secure jobs —improving labor standards while expanding the region’s tax and social protection base.
Gender and development dividends (high political goodwill) —Because millions of women depend on shea, a well-handled intervention that protects incomes while upgrading processing will deliver visible development wins and political capital for ECOWAS institutions and member governments. International donors and private sector partners already place a high premium on women-centered shea programmes.
Reputational and strategic leadership —Quick, visible ECOWAS engagement, through mediation, or a regional shea development plan, would signal the bloc can manage complex cross-border economic shocks —strengthening its standing with citizens, donors and investors. By establishing an integrated value chain for the shea industry, ECOWAS would be reaching one of the most strategic objectives of its Vision 2050.
Yesterday’s rivals become tomorrow’s partners
By building an integrated regional value chain for the shea nut industry, ECOWAS can transform political tension among member states into mutually beneficial collaboration. Instead of each country exporting raw shea nuts and competing for external buyers, regional coordination would align production standards, invest in shared processing facilities, and distribute roles across the value chain—from cultivation to processing to marketing. This creates interdependence: producers, processors, and exporters in different countries rely on one another’s strengths, expanding total value rather than fighting over a limited share. As a result, states that once viewed each other as market rivals become partners in a coordinated regional industry with higher incomes, stronger bargaining power, and shared prosperity.
Conclusion
Although ECOWAS’ future is often portrayed as precarious, the threat is more apparent than real. The organization retains several concrete and attainable policy options that could not only preserve its relevance but elevate it into an indispensable regional actor. Central to this transformation is the need to confront and dismantle the structural barriers imposed by colonial legacies—barriers that continue to fragment West African economies and hinder collective action. By prioritizing the creation of integrated regional value chains, ECOWAS can foster deeper economic interdependence, encourage collaborative problem-solving, and cultivate a shared sense of purpose among member states. Such integration would generate higher-quality employment opportunities, boost regional prosperity, and ultimately reinforce the institution’s political and economic foundations.
[Image credit: Ecowas/Facebook]
The views and opinions expressed in this article are those of the author.
Eric Tevoedjre earned his doctorate in Political Science from Johns Hopkins University. His research concerns regional integration in Africa. He also leads a personal initiative, panafrica.fr, which provides guidance and support to members of the African diaspora considering relocation to the continent.
