Despite federal government policies mandating value addition before export, the value of raw materials shipped out of Nigeria rose sharply by 159 percent year-on-year (y/y), hitting about ₦1.87 trillion in the first half of 2025 (H1’25) compared to ₦719.66 billion recorded in the same period of 2024 (H1’24).
Data from the National Bureau of Statistics (NBS) also shows a 67.8 percent quarter-on-quarter (q/q) increase, as raw material exports grew from ₦1.11 trillion in H2’24 to ₦1.87 trillion in H1’25.
A review of the last three years reveals a sustained rise. For instance, the ₦719.66 billion exports in H1’24 represented a 108.3 percent increase over ₦345.51 billion in H1’23.
Key Destinations of Nigeria’s Raw Materials
The bulk of exports during the review period were:
Urea (whether or not in aqueous solution), largely shipped to Brazil.
Nonmonetary gold (including gold plated with platinum) in powder form, exported mainly to Switzerland.
This surge contradicts repeated government efforts to discourage the export of raw, unprocessed materials and instead promote local processing.
Government’s Push for Value Addition
In 2024, the Minister of Innovation, Science, and Technology, Chief Uche Geoffrey Nnaji, unveiled a 10-year roadmap designed to transform Nigeria’s raw material sector. The target is to achieve 60 percent value addition by 2034, up from the current 25 percent, which he described as “unacceptable.”
According to the minister, the benefits of boosting local processing include:
Job creation,
Growth of domestic manufacturing, and
Strengthening of the naira.
The roadmap was developed in partnership with the African Development Bank (AfDB).
New Legislation to Curb Raw Material Exports
A new amendment to the Raw Materials Research and Development Council Act, 2022 introduces stricter compliance measures. The provisions include:
A mandatory 30 percent processing requirement for exporters,
A 15 percent levy on the export value of non-compliant raw materials,
Possible suspension or revocation of the exporter’s value addition certificate.
Additionally, any raw material exported below the required processing threshold will now be classified as “smuggled goods” and penalized under existing Customs and trade laws.
The bill further seeks to reduce import dependency by promoting the use and processing of materials that can be sourced locally.
Manufacturers Back Government Efforts
Commenting on the development, Segun Ajayi-Kadir, Director General of the Manufacturers Association of Nigeria (MAN), stressed the importance of processing raw materials locally.
According to him, exporting unprocessed resources leads to job losses, stifles technological advancement, and hinders economic diversification.
> “The association supports initiatives like the amendment to the Raw Materials Research and Development Council Act, which mandates at least 30% local processing. This will strengthen industries, foster innovation, and create jobs for Nigerians,” he said.
