FG Frowns Against Export of Unprocessed Raw Materials, Says Investors Must Process Locally
- The Federal Government of Nigeria has said it would stop the export of unprocessed mineral resources to promote local value addition
- A new bill requiring at least 30% processing before export is currently awaiting the assent of President Bola Tinubu
- The government believes the new policy will boost job creation, increase foreign earnings, and strengthen the country's economy
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, tech and macroeconomic trends in Nigeria.
The federal government has frowned upon the export of unprocessed raw materials from the country, noting that investors and exporters must process raw materials locally before exporting to international markets.
The Minister of Innovation, Science and Technology, Dr Kingsley Udeh, disclosed this during a national advocacy and sensitisation conference organised by the Raw Materials Research and Development Council (RMRDC) in Abuja.
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Dr Udeh said his ministry is committed to ensuring that the country benefits more from its natural endowments through value addition and job creation.
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According to the minister, a new bill mandating value addition is now before President Bola Tinubu for assent after it was passed by the National Assembly.
Under the proposed law, investors will be required to process Nigeria’s minerals by at least 30% before exporting them. Dr Udeh said the policy would prevent the outflow of raw materials in their natural state.
He encouraged companies to set up processing facilities within the country, adding that penalties for non-compliance have been clearly outlined in the bill.
The minister explained that implementing the law would help Nigeria shift from an import-dependent system to a more productive, export-oriented economy.
He also stressed that local processing would create jobs, enhance foreign exchange earnings and stimulate broader economic growth.
Dr. Udeh, who recently joined the federal cabinet, noted that his leadership would focus on strengthening coordination within the innovation and technology ecosystem.
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He said the goal is to support industry players in turning research outcomes into commercial products and services that contribute to national development.
He said:
“My core focus as the minister of innovation, science and technology is to lead the ecosystem to give the needed impetus to energise the players and stakeholders in the industry and give them the needed confidence to make progress.”
Also speaking at the event, the Director-General of RMRDC, Prof. Nnanyelugo Ike-Muonso, said the 30% Value-Addition Bill is designed to end the long-standing practice of exporting raw minerals without processing.
According to him, the policy will push both local and international stakeholders to invest in Nigerian-based processing and manufacturing facilities, thereby improving productivity and expanding employment opportunities across the country.
Investors eye Nigeria's lithium worth $34 billion
Legit.ng earlier reported that investors have been eyeing lithium, a key component of batteries for renewable energy storage systems and electric vehicles (EVs), in Nigeria.
The country’s massive lithium reserves are estimated to be worth over $34 billion. As countries focus on developing more electric vehicles, Nigeria's lithium has been attracting interest all around the world.
According to FG, two plants have already been placed into operation, and a third is currently under construction.
Special assistant on media to Dele Alake, minister of solid minerals development, Segun Tomori, had said in a Twitter Space that the attention of the international mining industry is focused on lithium because it is a critical raw material for the production of solar panels and electric vehicles.
Source: Legit.ng
