By Faridat Salifu
The Federal Government has announced plans to mandate a 30 percent value-addition on all raw materials before export.
The Minister of Innovation, Science and Technology, Kingsley Udeh, disclosed this on Friday at a press briefing held after the National Advocacy and Sensitisation Conference in Abuja.
The conference was organised to sensitise stakeholders to the Raw Materials Research and Development Council 30 per cent Value-Addition Bill, which is awaiting presidential assent.
Udeh said the measure would ensure that raw materials receive at least 30 per cent processing before being exported.
He said the initiative is intended to improve local content and strengthen manufacturing.
The minister cited lithium as an example, noting that the mineral is currently exported in its raw form.
He said the new requirement would encourage the production of lithium concentrate or lithium salt within the country.
Udeh said the value-addition benchmark would differ across sectors and products.
He said the technical assessment of the 30 percent requirement would depend on market needs for final products, saying that the policy is expected to expand production capacity and job opportunities.
The minister said the initiative would support economic growth and improve Nigeria’s balance of trade, explaining that the objective is to reduce import dependence and encourage export capability.
He cited cocoa as an example of a commodity exported raw and re-imported as finished products.
The minister said enforcing the new law would help reduce such losses, maintaining that Nigeria has the ideas and capacity needed for value addition.
He said the goal is to convert research outputs into market-ready products, adding that the implementation of the law would be backed by government investment and infrastructure support.
He said the National Bank is preparing financing to help industries comply with the new standard.
The minister said a national dashboard is being developed to track raw materials across sectors, warning that there will be sanctions for non-compliance with the law, and the sanctions will include economic penalties.
He said the requirement would ultimately enhance the capacity and revenue of industry players, observing that full compliance is in the collective interest of stakeholders.
The Director-General of the Council, Nnanyelugo Ike-Muonso, said he is committed to restoring the council’s role in raw-materials development, stressing that Nigeria’s industrialisation depends on the effective use of local resources.
He said the bill rests on two pillars, including a prohibition on exporting raw materials without a minimum of 30 percent value addition, while the second pillar is a ban on importing raw materials that are abundant in Nigeria.
The MD said the legislation aims to boost manufacturing, increase employment and attract investors, expressing delight that the National Assembly and the Presidency supported the initiative.
He said the bill aligns with President Bola Tinubu’s position on retaining value from natural resources.
Ike-Muonso said early advocacy is necessary before presidential assent, the approach prevents delays in implementation and early engagement also provides a clear signal to investors.
He urged manufacturers, SMEs, regulators, civil society and state governments to begin preparing for compliance, saying that the transition represents a major structural shift.
He said the bill is a declaration of Nigeria’s economic independence.
Nigeria has historically exported raw materials with minimal domestic processing.
Previous attempts to improve value addition faced challenges related to enforcement and infrastructure.
The bill was passed by the National Assembly after consultations with industry stakeholders. The legislation is now awaiting presidential assent.
