The Minister of Innovation, Science and Technology, Kingsley Udeh has outlined the Federal Government’s plan to mandate a 30 per cent value-addition on all raw materials prior to export, describing the initiative as “one of the most significant steps towards the industrialisation of Nigeria.”
Udeh stated this at a press briefing held shortly after the one-day National Advocacy and Sensitisation Conference held in Abuja.
The conference was organised to raise awareness among stakeholders about the recently passed Raw Materials Research and Development Council 30 per cent Value-Addition Bill, which is currently awaiting Presidential assent.
According to Udeh, the law will ensure that “before any of our natural wealth in the form of raw materials is exported, at least 30 per cent value will be added to such resources, natural wealth, or raw materials.”
He explained that the measure is intended to “improve local content,” strengthen manufacturing, and expand opportunities for Nigerians to deploy their innovation and skills.
The minister cited lithium as a key example, noting that the mineral is currently exported “in the rawest form,” but that the new legal requirement would force a shift toward producing “lithium concentrate or lithium salt” within the country.
“That is employment. That is an increase in capacity. That is also the establishment of infrastructure,” he said.
Udeh stressed that the value-addition requirement would vary by sector and product.
“There would be certainly a technical aspect of working out what would be the 30 per cent of each raw material,” he said, adding that calculations would be linked to “what the final product does the market particularly want.”
According to him, the economic impact would be far-reaching.
“It’s something that would expand the Nigerian economy, expand our production capacity, expand the job opportunities we have as a country, increase our GDP, increase of course a balance of trade, and then of course dignity and sovereignty as a nation,” he said.
The minister said the policy aims to reverse decades of capital flight and import-dependence
He pointed to cocoa as an example of how Nigeria “export our cocoa beans to the international market and then buys them back as chocolate,” insisting that the new law would reduce such losses.
The minister rejected concerns that the requirement might deter investors.
Udeh said foreign companies currently exporting Nigerian minerals such as coal and steel would be required to establish domestic operations.
“With this law, they will know that we have to be here to set up business that will be involved in adding value,” he said, stressing that investors would still profit while Nigeria gains jobs and infrastructure.
The minister also described his broader mandate as one of mobilising the country’s innovation ecosystem.
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