FG sets 30% processing requirement for all exported raw materials

By Kunle Sanni –

The federal government is set to introduce a mandatory 30 per cent value-addition requirement on all raw materials before export, a policy officials say will mark a major turning point in Nigeria’s industrialisation drive.

Minister of Innovation, Science and Technology, Kingsley Udeh, announced the plan on Friday in Abuja during a press briefing that followed a one-day National Advocacy and Sensitisation Conference on the new Raw Materials Research and Development Council (RMRDC) 30% value-addition bill. The bill, recently passed by the National Assembly, is currently awaiting presidential assent.

Udeh described the forthcoming law as “one of the most significant steps towards the industrialisation of Nigeria,” noting that it would require exporters to process raw materials by at least 30 per cent before shipping them out of the country.

According to the minister, the policy is designed to deepen local content, energise domestic manufacturing, and create more opportunities for Nigerians to deploy their skills and innovation.

He highlighted lithium as a key example of resources that leave Nigeria almost entirely unprocessed. Under the new rule, companies would be required to convert raw lithium into products such as lithium concentrate or lithium salt before exporting.

“That is employment. That is an increase in capacity. That is also the establishment of infrastructure,” Udeh said.

The minister noted that the 30 per cent requirement would not be uniform across all sectors, as the degree of value addition would depend on the characteristics of each raw material and global market needs.

Udeh projected that the economic benefits would be extensive, with the policy expected to expand production capacity, boost job creation, increase GDP, and improve Nigeria’s balance of trade. He said the initiative is aimed at curbing capital flight and reversing long-standing dependence on imported finished goods.