In a sweeping move to reduce raw material imports and rebuild its local manufacturing base, the Nigerian government has unveiled a renewed commitment to industrialisation, backed by a soon-to-be-launched Nigerian Industrial Policy.
The policy, jointly driven by the Federal Ministry of Industry and the Manufacturers Association of Nigeria (MAN), is designed to move the country away from excessive reliance on imported goods and ramp up domestic production.
Nigeria’s manufacturing sector, currently contributing under 10% to the nation’s GDP, has been identified as a cornerstone for long-term economic growth. But that potential continues to be eroded by the country’s staggering dependency on foreign raw materials. Between January and September 2024 alone, Nigeria imported raw materials valued at over N4.53 trillion, evidence of a deeply rooted structural problem.
Policy to Align With Global Standards
Minister of State for Industry, John Owan Enoh, while speaking at the 2025 Nigerian Manufacturing & Equipment Expo in Lagos, explained that the incoming policy was developed in consultation with stakeholders and tailored to align with global trends in industrialisation.
“We must produce, and we must do so competitively,” he stressed, after touring equipment developed locally for manufacturing. He noted the policy is not just a federal initiative, but one built through collaboration with the private sector and industry stakeholders.
The aim is clear: foster innovation, create jobs, and reduce the economy’s vulnerability to global supply chain disruptions by strengthening home-grown industries, especially in high-potential sectors like agro-processing, textiles, pharmaceuticals, and auto-manufacturing.
Innovation at the Heart of the Push
Experts and stakeholders at the Expo agreed that Nigeria’s ability to reduce raw material imports lies in its willingness to embrace new technologies and smart manufacturing methods.
Professor Nnanyelugo Ike-Muonso, Director General of the Raw Materials Research and Development Council (RMRDC), highlighted that over 70% of inputs used in Nigeria’s manufacturing processes are still imported. He described this as a dangerous economic imbalance that continues to drain value and job opportunities offshore.
“We export raw resources in crude form and import them back as finished goods, losing both value and employment in the process,” he noted.
To combat this, the RMRDC has established pilot plants across Abuja to process locally sourced materials like cassava, shea, and other agricultural inputs into industrial-grade products. These facilities, if scaled, could transform Nigeria’s position in the global manufacturing ecosystem.
Legislation to Spur Local Value
As part of a broader strategy, the government has also backed legislation mandating a minimum of 30% local value addition before any raw material can be exported. This is aimed at encouraging in-country processing and creating incentives for companies to invest in local innovation.
This policy shift not only supports the goal to reduce raw material imports but also opens the door to serious investors by providing a legal framework that encourages sustainability and long-term planning.
Manufacturers Throw Their Weight Behind the Plan
Francis Meshioye, President of MAN, called for the adoption of smart factory protocols such as Internet of Things (IoT), AI-driven processes, and advanced recycling systems. These technologies, he said, are essential if Nigerian industries are to compete on a global scale.
He also pointed to energy-efficient production and green innovations as a path forward. “The global market is evolving rapidly, and for Nigeria to remain relevant, we must modernise how we produce,” he said.
Challenges Remain, but Momentum Builds
While the vision is ambitious, several challenges still stand in the way. Limited infrastructure, high operational costs, and access to finance continue to hinder the pace of industrialisation. However, the Expo served as a rallying point where policymakers, manufacturers, and innovators pledged to work collectively to find lasting solutions.
Minister of Innovation, Science, and Technology, Chief Uche Nnaji, summed it up best: “We cannot rely on outdated methods to solve today’s problems. Innovation must lead, and Nigeria must take its place in the fourth industrial revolution.”
Conclusion
The move to reduce raw material imports is not just about economics; it’s about sovereignty, sustainability, and securing a future where Nigeria builds instead of buys. If executed effectively, this industrial transformation could rewrite the country’s economic story.
What began as a policy discussion is fast becoming a national call to action, one that places Nigerian ingenuity, local production, and smart partnerships at the heart of its development journey.
