The Raw Materials Research and Development Council (RMRDC) has projected that Nigeria's proposed mandatory 30% value addition requirement for raw materials before export could generate over 1.2 million skilled jobs within five years. This projection was made by the council's Director-General and Chief Executive Officer, Prof. Nnanyelugo Ike-Muonso, at a briefing in Abuja ahead of the second Africa Raw Materials Summit (ARMS 2026). The proposed policy aims to encourage companies to process more Nigerian raw materials domestically.
The proposed policy is centered on the Raw Materials 30% Mandatory Value Addition Bill, which seeks to establish a statutory minimum of 30% domestic value addition to Nigerian raw materials before they are exported. The bill is currently awaiting presidential assent. According to the RMRDC, this policy could support import substitution, conserve foreign exchange, and strengthen local manufacturing. The council argues that increasing domestic processing could create opportunities across manufacturing, technology, logistics, and other parts of the industrial value chain.
The RMRDC has also urged Nigeria to process its over $582.4 billion worth of documented non-renewable natural resources locally. Greater domestic processing would allow the country to capture more economic value from resources already available within its borders. This is part of a broader attempt to change Nigeria's traditional commodity trade structure, where raw materials are frequently exported with limited processing, while the country imports finished or semi-finished products at higher costs.
The policy debate comes against the backdrop of Nigeria's long-standing dependence on commodity exports. While raw materials generate export earnings, limited domestic processing can restrict the number of jobs and businesses created around those resources. Ike-Muonso emphasized that Africa needs to move away from the "pit-to-port" model, where resources are extracted and shipped abroad before finished products are imported back into African markets.
The proposed policy could have implications for manufacturing competitiveness and foreign exchange management in Nigeria. If more raw materials are processed locally, manufacturers could gain access to domestic inputs, while some products currently imported could potentially be produced within the country. However, achieving those benefits would depend on the ability of manufacturers to access reliable infrastructure, finance, technology, and efficient logistics.
The second Africa Raw Materials Summit (ARMS 2026) is scheduled to hold on October 19 and 20 at the Abuja Continental Hotel, with the theme "From African Feedstock to African Factories." The summit will examine logistics and infrastructure, policy and value addition, circular economy and waste industrialization, AfCFTA regional value chains, technology commercialization, and capital linkage. Over 1,800 delegates from all 54 African countries, investors, manufacturers, technology companies, and other industrial stakeholders are expected to attend.
For Nigeria, the success of the proposed 30% rule will ultimately depend on implementation. Turning a large resource base into jobs and stronger manufacturing will require more than legislation; it will also require investment in infrastructure, technology, skills, financing, and industrial capacity. If those conditions are developed alongside the proposed policy, greater domestic value addition could help Nigeria move further up the production chain, retain more economic value from its resources, and create new opportunities for skilled employment and local manufacturing.
Key points
- The proposed 30% value addition requirement for raw materials before export could generate over 1.2 million skilled jobs within five years.
- The policy aims to encourage companies to process more Nigerian raw materials domestically, supporting import substitution, conserving foreign exchange, and strengthening local manufacturing.
- The success of the proposed policy will depend on implementation, investment in infrastructure, technology, skills, financing, and industrial capacity.
