Despite the federal government’s efforts to mandate value addition before export, the value of raw materials exported from Nigeria rose drastically by 159 per cent year-on-year to N1.87 trillion in the first half of 2025.
This increase is also reflected in the quarter-on-quarter comparison, with a 67.8 per cent rise from N1.11 trillion in the previous half-year.
According to data from the National Bureau of Statistics, the bulk of raw materials exported during the period were mainly ‘Urea whether or not in aqueous solution’ exported to Brazil, followed by ‘Nonmonetary Gold (including gold plated with platinum) in Powder form’ exported to Switzerland. This surge contradicts the government’s efforts to discourage the export of raw materials without value addition.
The Minister of Innovation, Science and Technology, Chief Uche Geoffrey Nnaji, had announced a 10-year roadmap aimed at transforming Nigeria’s raw material sector, targeting 60% value addition by 2034.
Nnaji emphasized the importance of improving the value of Nigeria’s raw materials before export, citing benefits such as job creation, domestic manufacturing growth, and a strengthened naira.
“The current 25% value addition is unacceptable. We must work together to unlock the immense potential of Nigeria’s raw material sector,” he said.
Recently, the Director General of the Raw Materials Research and Development Council, Prof. Martin Muonso, announced the passage of a bill by the Senate mandating a minimum of 30% local processing before raw materials can be exported.
The new legislation stipulates that any exporter who fails to meet this requirement will face a 15% levy on the export value and may face suspension or revocation of their raw material value addition certificate.
The Manufacturers Association of Nigeria supports initiatives like this amendment, emphasizing the need to encourage local processing and value addition to foster industrial growth and job creation.
“The association believes that exporting raw materials contributes to job losses, limits technological innovation, and hinders economic diversification,” said Segun Ajayi-Kadir, Director General of MAN.
