The Federal Government is targeting a 17 per cent year-on-year growth in real output, aiming to raise real Gross Domestic Product to ₦23.2 trillion through a new bill that mandates 30 per cent value addition to raw materials before export.

Speaking on phone, the Director-General and CEO of the Raw Materials Research and Development Council, Prof. Nnayelugo Ike-Muonso, said the government is relying on enhanced local production and a cutback on raw material exports to stimulate economic growth, according to The Punch.

He said, “We have a quick estimate from a helicopter model we constructed. What we have done, using some experts when we started this bill, was that the economy would grow, real output, by more than 17 per cent on a year-on-year basis.”

Real output refers to the total value of all goods and services produced within a country over a specific period, adjusted for inflation.

According to the National Bureau of Statistics, Nigeria’s real GDP averaged ₦19.83 trillion in 2024, with quarterly figures of ₦18.28 trillion, ₦18.29 trillion, ₦20.12 trillion, and ₦22.61 trillion from Q1 to Q4, respectively. A 17 per cent increase in this average would raise the country’s real GDP to approximately ₦23.2 trillion.

The RMRDC DG described the 17 per cent growth target as “ambitious yet modest,” noting that the bill presents Nigeria’s strongest opportunity to enhance productivity, accelerate industrialisation, and achieve sustainable economic prosperity.

“In terms of the potential to create prosperity for Nigeria, it is awesome. It is something that everybody needs to support because it is at the very heart of production and productivity,” he asserted.

On July 2, 2025, the Nigerian Senate approved an amendment to the Raw Materials Research and Development Council Act, 2022, mandating that exporters must locally process at least 30 per cent of raw materials before export. Sponsored by Senator Onyekachi Nwebonyi, the amendment aims to promote value addition, boost domestic manufacturing, curb imports, and support long-term economic growth.

Exporters who fail to meet the 30 per cent processing requirement will face a 15 per cent levy on the export value and risk suspension or revocation of their value-addition certificates.

The amendment also empowers the Raw Materials Research and Development Council to issue detailed guidelines defining what constitutes 30 per cent local processing. These guidelines will address standards, applicable technologies, and environmental safeguards.

Exports that fail to meet the required processing threshold will be deemed “smuggled goods” under existing customs laws, subject to applicable penalties.

Senate President Godswill Akpabio hailed the amendment as a significant step toward Nigeria’s industrialisation, stating that the law would cut dependence on imported materials, attract investment in local processing, and enhance the global competitiveness of Nigerian exports.

The 30 per cent value-addition bill now awaits presidential assent to become law.