Nigeria is rich in minerals and agricultural resources. Yet, much of what it produces is exported in raw form.
This long-standing pattern has denied the country jobs, industries, and stronger global trade leverage.
Experts now insist that Nigeria must shift focus—towards exporting processed, value-added products.
They say such a move will unlock new jobs, build stronger industries, and boost Nigeria’s place in global markets.
President Bola Tinubu echoed this message at the first West African Economic Summit (WAES).
He warned that Africa cannot afford to remain a warehouse of raw materials in a world powered by green technologies.
“Our rare minerals power tomorrow’s green technologies, yet it is not enough to be resource-rich,” he said.
“We must become value-chain smart and invest in local processing and regional manufacturing.”
His comments came as global demand for green energy resources continues to rise, especially lithium, cobalt, and other rare minerals.
Africa, Tinubu said, must not repeat the historical pattern of extraction without development.
New Licencing Rules Target Local Processing in Mining Sector
The National Bureau of Statistics (NBS) reports that raw material exports hit ₦1.04 billion in Q1 2025.
Yet most of this left the country unprocessed—despite new policies aimed at reversing the trend.
Segun Tomori, spokesperson for the Minister of Solid Minerals Development, explained Nigeria’s new licensing rules.
He said new mining licences will only go to companies that present a clear plan for local processing.
“In exchange, we have to review their plans for setting up a plant and how they would add value to the Nigerian economy,” Tomori said.
He added that Nigeria would offer investors incentives such as tax waivers, power access, and full profit repatriation.
Senate Bill Mandates 30% Local Value Addition
In May, the Nigerian Senate passed an amendment to the Raw Materials Research and Development Council Act.
The bill mandates that at least 30% of all raw materials exported must be processed locally.
This move, lawmakers believe, will push industries to add value before shipment, creating more local jobs.
According to the Raw Materials Research and Development Council, Nigeria’s value addition grew from 15.6% in 2013 to 25.2% in 2023.
Still, this figure lags behind global peers.
South Africa’s value-added exports rose from 63.2% in 2013 to 75.6% in 2023.
Egypt improved from 51.1% to 64.8%, and Brazil jumped from 83.4% to 97.6%.
By comparison, Nigeria’s 10-year average of 20.43% remains far behind South Africa’s 69.4% and Brazil’s 89.93%.
Experts say this gap is proof that Nigeria has not yet embraced industrial transformation.
‘Every Raw Export is a Lost Job’ – Supply Chain Expert
Obiora Madu, Director General of the African Centre for Supply Chain, criticised Nigeria’s weak value addition.
“Each time we export raw produce, we export and lose jobs,” he said.
He explained that countries importing Nigeria’s raw goods end up processing them and creating employment abroad.
“The jobs that ought to be done here, you are sending them somewhere else to be done,” he added.
He said Nigeria loses billions annually through this pattern of export without industrial growth.
Madu recalled that the African Development Bank (AfDB) once introduced a facility to support export value addition.
The AfDB Export Stimulation Loan was meant to empower companies to build local processing plants.
But according to him, most of the 41 companies involved in the scheme abused it.
“Typically, like many other things in Nigeria, people took advantage of it and saw it as a national cake,” he said.
“As we speak today, maybe only one is still there.”
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