Nigeria, Africa’s largest economy and most populous country, continues to export a large share of its mineral and agricultural resources in raw form despite having the potential to transform its economy through local processing and value-added production. Industry experts and top government officials say this long-standing practice is limiting job creation, weakening industrial capacity, and undermining the country’s global trade competitiveness.
At the inaugural West African Economic Summit (WAES) held recently, President Bola Ahmed Tinubu made a strong case for regional economies to end the extractive export model and instead invest in manufacturing and processing capabilities that will unlock true economic value from Africa’s vast natural wealth.
“Our rare minerals power tomorrow’s green technologies, yet it is not enough to be resource-rich,” Tinubu said. “We must become value-chain smart and invest in local processing and regional manufacturing.”
His statement comes as Nigeria and other African nations face growing global demand for minerals like lithium, cobalt, and manganese, which are critical to clean energy technologies. Despite this opportunity, many of these resources are exported in unrefined forms, benefiting foreign economies while leaving domestic industries underdeveloped.
According to data from the National Bureau of Statistics (NBS), Nigeria’s raw materials trade in the first quarter of 2025 amounted to ₦2.8 billion, with imports accounting for ₦1.8 billion, while exports stood at ₦1.04 billion. Although this was higher than Q1 2024, the data reflects a persistent imbalance between imports of finished goods and exports of unprocessed commodities.
Segun Tomori, spokesperson for the Minister of Solid Minerals Development, recently announced that the federal government will no longer grant new mining licences unless the applicants present clear plans for local mineral processing. This is part of the ministry’s strategy to boost industrialisation, increase government revenues, and create jobs.
Tomori stated that under new guidelines, companies must commit to adding value within Nigeria. “We have to review their plans for setting up a plant and how they would add value to the Nigerian economy,” he said. He added that the government is ready to support genuine investors with incentives such as tax waivers on imported mining equipment, streamlined electricity generation licences, and unrestricted profit repatriation for foreign investors.
The issue of raw material exports has long plagued Nigeria’s economic trajectory. Despite multiple industrialisation policies over the years, including initiatives to promote agro-processing, mineral beneficiation, and local content in manufacturing, actual implementation has been weak, and Nigeria continues to depend heavily on crude oil, solid minerals, and agricultural exports in their raw form.
The African Development Bank (AfDB) has also echoed the call for transformation. In a recent advisory, the AfDB urged African countries to move beyond exporting raw materials and instead build regional value chains, particularly in energy transition sectors. The Bank emphasized that developing local industries around lithium, cobalt, and other critical minerals could position Africa as a global leader in clean technology manufacturing.
Analysts say the inability to process and refine locally not only deprives Nigeria of the potential for high-paying jobs but also limits the country’s negotiating power in global markets. Countries that control the entire value chain, from extraction to production, enjoy greater economic benefits and stability.
The manufacturing sector in Nigeria has also struggled due to challenges such as unstable power supply, multiple taxation, insecurity, and limited access to finance. However, stakeholders believe that with targeted reforms and a focus on building industrial clusters around raw material sources, Nigeria can change its economic direction.
The call for value addition is not new, but President Tinubu’s strong position and the policy shift at the Ministry of Solid Minerals may mark a turning point if effectively implemented. Experts warn that failure to act now could leave Nigeria behind in the race for global relevance, especially as countries around the world seek secure and sustainable sources of critical materials for green energy, electric vehicles, and digital infrastructure.
Industry players are watching to see how the government’s new stance on local processing will be enforced in practical terms. For many, it is not just about policies on paper but a matter of building real infrastructure, creating an enabling business environment, and ensuring regulatory stability that gives investors the confidence to build factories rather than just loading ships.
