The shea sector in Nigeria has potential but faces challenges. Women currently collect and process shea nuts with little organization and quality varies. Interventions provided information, capacity building, and stakeholder engagement. This helped improve quality and emerging groups. Further success requires a private sector lead, coordination, quality and market improvements, and linking stakeholders to domestic and global markets. Continued public-private partnerships and matching quality and quantity to demands can help transform the sector.

1. Transforming the Shea Sector in Niger State, Nigeria by Petra Jacobi Employment-oriented Private Sector Development Programme(GTZ - EoPSD) Nigeria

3. It is estimated that only about 1/3 of the nuts are currently collected, processed or traded

4. The women consume the butter in the household or sell it on the village markets, few organized groups exist

5. Middle-men/ processors purchase some of the butter. They supply the domestic (cosmetic products) and the export market

7. Systematic stakeholder dialogue to get an understanding about the potentials and challenges in the sector, buy-in from public and private sector for upgrading activities

9. processing techniques

10. product quality and packaging

11. shea financing

13. It needs an initial “external push” to bring stakeholders together and on board

14. Buy-in from private stakeholders isessential for the transformation process

16. The upgrading process needs considerable funding if outreach is envisaged. Funds can come from the public sector, but also from committed value chain actors (traders or processors). The financial means of the primary processors are in mostcases too limited

18. Impact so far Improved butter quality after introducing an improved processing method Emerging village groups, which receive further support to supply local (and international) processors Strong commitment of the Nigerian public sector (Niger State) to support the transformation process Growing interest of the private sector (traders and processors) to invest in this upgrading process to secure their supply base and to become part of the success story. Initial Public Private Partnership Arrangements have been concluded and more are under discussion

20. Broadening and sustaining quality improvement of the product

21. Promotion of Nigerian Shea Butter

22. Linking shea stakeholders to global markets

24. Background: Employment-oriented Private Sector Development Programme in Nigeria Objective: Improve the competitiveness of Micro-, Small and Medium-Scale Enterprises to generate Income and Employment Programme Beneficiaries:MSMEs in non-agic and agricultural subsectors, e.g. Sheanut Political Partner: National Planning Commission Implementation Partners: Stakeholders from the private & public sectors and civil society Programme Area: Niger, Nasarawa and Plateau State Programme Durationtill 8/2010, possible 8/2014 & Funding: Grant by the German FederalGovernment Information/Contact:www.eopsd.net&www.gtz.de