Stakeholders Urge Value Addition for Nigeria’s Raw Materials Before Export

Stakeholders in the raw materials and manufacturing sectors have discussed the need to process and enrich Nigeria’s raw materials to maximize their value before exporting them.

The discussions took place during the maiden edition of the Raw Materials Research and Development Council (RMRDC) Program Presentation and Dialogue Session with development partners, the diplomatic community, and business councils in Abuja, Nigeria’s capital.

During the dialogue, the Minister of Innovation, Science, and Technology, Uche Nnaji, emphasized that increased utilization of local raw materials will reduce Nigeria’s dependence on imports and position the country as a key player in the global raw materials value chain.

“The importance of adding value to our raw materials before export cannot be overstated. By doing so, we can create more jobs, stimulate the growth of domestic manufacturing, and ultimately strengthen the value of the naira,” he stated.

The Minister added that, with the support of the African Development Bank (AfDB), the RMRDC is on the verge of developing a comprehensive 10-year roadmap to achieve a transformational leap in Nigeria’s raw material value addition, from the current 25% to a target of at least 60%.

“This ambitious goal is not just a number; it represents a bold vision for Nigeria’s future—where our raw materials are no longer exported in their crude form but are processed and enriched to maximize their value before leaving our shores,” he said.

He called on development partners, the diplomatic community, business councils, and financial institutions to consider it both desirable and necessary to collaborate with the RMRDC in these transformative efforts.

“With your support, we can develop the critical capacities necessary to usher in a new era of raw material utilization that will define the future of Nigeria’s industrial landscape. I thank the African Development Bank for offering to co-create the 10-year development plan with the RMRDC. This initiative is highly commendable, and we encourage others to join. Your support will accelerate our progress toward the desired target,” the Minister stated.

The Permanent Secretary of the Federal Ministry of Innovation, Science, and Technology, Mrs. Esuabana Nko-Asanye, highlighted some of the critical aspects of the 10-year roadmap, which include the Raw Materials Management Information System, Research and Demonstration Plant Complex, Circularity and Repurposing of Raw Materials, and a Chemical Markets and Policy Centre.

“Today’s presentation is more than a discussion of our plans. It is a call to action for partnership. We seek your collaboration and technical expertise as we lay out the blueprint for transforming Nigeria’s raw material sector into a globally competitive and sustainable ecosystem,” she said.

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The Chairman of the Senate Committee on Science and Technology, Senator Abbas Aminu Iya, commended the dialogue and assured that the Parliament would support any policy that promotes processing raw materials within Nigeria before export.

Fred Kabanda, Manager of the Natural Resources Management and Investment Centre at the African Development Bank Group, noted that Africa hosts over 60% of the world’s remaining arable land, and its forests cover about 21% to 23% of the continent’s total land mass.

He added that despite Africa’s immense natural resources, its economies remain among the least developed globally, with the size of its economies being among the smallest compared to other regions.

“In our continuous analysis, we have observed that continued reliance on commodity exports with little value addition leaves the continent with limited returns and even poorer outcomes. The real price of commodity exports has been declining over time, and the lack of value addition and beneficiation exports jobs, tax revenues, and growth and has a high carbon footprint,” he stated.

Kabanda highlighted that the African Development Bank’s Ten-Year Strategy (2024-2033) and its High 5 agenda provide a strategic framework to support African countries with interventions that lead to economic growth and improved quality of life for Africans.

The Country Director of DAI, Dr. Joe Abah, emphasized that Nigeria, with its 44 identified solid minerals, including substantial iron ore, lead, zinc, and limestone reserves, has the potential to drive large-scale industrialization.

He added that the country’s rich agricultural raw materials like cocoa, cotton, and palm oil also play a vital role in global trade.

“Globally, the demand for raw materials is shifting, and the opportunities for countries like Nigeria are immense. The recent focus on renewable energy technologies and battery storage has intensified the need for minerals like cobalt and lithium—both essential for electric vehicles and energy storage. Nigeria has vast, untapped reserves of cobalt and other valuable minerals. For example, global demand for lithium is expected to increase by 500% by 2050. Africa is projected to be a key supplier of the required resources for the world’s $1.6 trillion battery market,” Dr. Abah stated.

The stakeholders agreed that utilizing local raw materials would reduce dependence on imports and position the continent as a critical player in the global raw materials value chain.