Director of the Agriculture and Agro-Allied Raw Materials Department at the Raw Materials Research and Development Council (RMRDC), Dr Sab Ebirekwe, says Nigeria’s proposed law mandating a minimum of 30 per cent value addition before raw materials are exported will end decades of “selling wealth and importing poverty.”
Speaking in an interview with ARISE News on Friday, Dr Ebirekwe said the bill—awaiting presidential assent—will force a structural shift that Nigeria has avoided for years by exporting raw commodities without processing.
“Before any raw material leaves the shores of this country, there must be a minimum of 30 per cent processing,” he said. “We have been exporting our natural raw materials raw and losing value.”
He highlighted how Nigeria’s import bill underscores this paradox.
“Between April 2023 and June 2024, Nigeria spent over ₦27 trillion importing manufactured goods, ₦5.4 billion importing agricultural raw materials we can easily produce here, and over ₦16.7 trillion on oil and power,” he noted. “A country abundantly blessed with raw materials should not be importing what it already has.”
Ebirekwe dismissed fears that the bill could scare away investors, insisting that extensive preparation had been done before it was conceptualised.
“This bill presents one of the most consequential industrialisation interventions since 1999,” he said. “Adequate provisions have been made to train people, build capacity, and put infrastructure in place.”
He explained that clustering—one of the council’s flagship strategies—is already underway.
“In each cluster, you have common power, common storage, common waste disposal. These common facility centres will help small processors absorb the initial shock,” he said.
He added that cooperatives would also be formed to support smallholders who fear displacement.
“They can aggregate, access support through robust partnerships, and withstand the transition,” he said.
On concerns over power and processing capacity, Dr Ebirekwe said the clustering model is designed to bridge infrastructure gaps.
“Common facility centres will provide infrastructure accessible to those who cannot afford it individually. These facilities will supply the needed support until scale improves,” he said.
Ebirekwe stressed that the value-add requirement is technically grounded and sector-specific.
“This 30 per cent is not cosmetic,” he said. “It will be measured by the percentage of processing and set transformation standards.”
He explained that there is no universal formula.
“It varies across sectors. What is 30 per cent for cassava is not what is 30 per cent for kaolin,” he said.
“For cocoa, turning it into butter alone could meet the 30 per cent. For iron ore, removing impurities could constitute the 30 per cent.”
A team of experts, he said, will define the parameters for each commodity.
On compliance, Ebirekwe said strict monitoring systems will ensure the policy is not abused.
“We are working with Nigeria Customs and standard agencies. Certification will be given once value addition is verified,” he said.
“There will be a National Value Addition Index or dashboard that stipulates all requirements. Any smuggling or infractions will be detected, and there will be consequences.”
With presidential assent pending, Ebirekwe said the council is ready to ensure full enforcement once the bill becomes law.
“Adequate enforcement procedures are already in place to track anything that goes wrong,” he said.
He affirmed that the goal is to shift Nigeria from exporting wealth to building industries, creating jobs, and retaining value within the economy.
Boluwatife Enome
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