By Merit Ibe
Players on the Nigerian economic landscape have stressed that the export sector will remain underwhelming until the country shifts from raw commodity exports to value-added products.
They have argued that such a transition is the fastest route to economic rebound, job creation and sustainable growth and must be the focal point of economic revival and sustainability frameworks.
Stakeholders have noted that despite the country’s abundance of agricultural and mineral resources, Nigeria still relies heavily on exporting raw commodities with little or no processing. This practice, they argued, limits the country’s revenue potential and places it at a disadvantage in the global market where finished goods command higher prices.
The National Bureau of Statistics (NBS), recent report says manufactured goods exports rose consistently over the past five years, moving from N304.09 billion in H1’21 to N338.61 billion in H1’22, N343.29 billion in H1’23, N749.52 billion in H1’24, and finally N1.10 trillion in H1’25.
The latest report indicates a remarkable 46 percent increase year-on-year, yet analysts say this growth still falls short of the opportunities Nigeria could harness if raw materials were consistently processed into higher-value products.
It is noteworthy also that a lot is also lost annually to illegal cross-border trade through neighbouring countries, making it difficult to capture the true value of Nigeria’s exports.
While NBS data reflects encouraging growth in Nigeria’s manufactured exports, experts insist that the country’s exports are still low when measured against its immense potential. The key to bridging this gap lies in prioritizing value addition across sectors, ensuring that Nigeria no longer remains just a supplier of raw materials, but a competitive player in global value chains.
Some observers argue that the recent spike in export earnings is largely due to naira depreciation, which makes Nigerian goods more affordable in international markets. Other credit policy initiatives and reforms by the Nigerian Export Promotion Council (NEPC), especially its support for women in exports, capacity-building training, digital services, and the Double Your Export campaign, which emphasizes funding, export credit insurance, and support for value-added processing.
Despite these positive moves, stakeholders warn that Nigeria still exports a disproportionate share of raw, unprocessed commodities, thereby forfeiting the economic gains tied to processing and refining.
The lack of domestic processing means that Nigeria continues to export jobs, capital, and opportunities, instead of retaining them within the economy.
It is obvious that the government has to provide enabling policies, infrastructure, and financing that would support industries to process raw materials before export.
Consistent power supply, improved transportation networks, and access to credit are critical in achieving this goal. With deliberate investment and collaboration between government and the private sector, the experts stressed that Nigeria can transition from a raw material exporter to a hub of manufactured goods, driving sustainable economic growth.
Dr. Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), explained that while currency devaluation has opened up opportunities for exporters, it is not a sustainable growth strategy. “Devaluation naturally creates opportunities because our goods are cheaper. But the surge in exports would have been much greater if we accounted for unofficial exports not captured in the data,” he said.
Also commenting, the Project Implementation Team Leader of the Calabar and Gulf of Guinea Municipal and Trade Centre Limited By Guarantee, David Etim, argued that true competitiveness lies in value addition.
“Processing raw materials into higher-value goods boosts profitability, strengthens global competitiveness, creates employment, and insulates the economy from volatile commodity prices.
Etim highlighted that Nigeria’s real weakness lies not in the volume of its exports, but in their quality relative to potential. “Nigeria has the potential to be a mining destination, an agricultural powerhouse, and a manufacturing hub that feeds Africa. But we are still exporting mostly raw produce,” he said.
Etim pointed to cassava as a powerful example.
“Raw cassava accounts for a fraction of its value chain, but when processed into ethanol and further refined into biodegradable plastics, its worth increases exponentially. “The value of biodegradable plastics from cassava can be up to a thousand times higher than raw cassava. Yet Nigeria still exports cassava flakes while importing plastic bags, many of which may have been produced abroad using Nigerian cassava. This is the tragedy of not climbing the value chain,” he said.
Similar examples exist across Nigeria’s resource base, from cocoa that could be transformed into chocolates, to shea nuts that could be processed into cosmetics. When these goods leave Nigeria in raw form, the country loses out on the wealth embedded in refining, branding, and final production.
Etim urged Nigeria’s Ministries of Industry, Trade, and Investment, along with NEPC and the Nigerian Investment Promotion Commission (NIPC), to focus more deliberately on attracting capital for large-scale processing industries, with the objective to retain as much of the value chain as possible within Nigeria.
He cited the case of the Dangote Refinery, noting that by processing crude oil domestically into high-grade petroleum products for export, it captures a far greater portion of the value chain and generates more foreign exchange. He said the same strategy should be applied to agriculture, solid minerals, and petrochemicals.
“Every time we export raw shea nuts, cocoa, or cassava, we are exporting jobs and capital,” Etim emphasized. “But if we add value before export, we retain wealth within our borders while still earning foreign exchange. That is the real path to inclusive economic growth.”
Dr Dapo Omojola, a sales and marketing expert viewed that the surge in export values is driven by a mix of external factors such as global demand and favorable prices as an aftermath of a devalued naira which makes the goods relatively cheaper.
“Internal reforms such as currency depreciation, policy support, improved export processes could have also contributed to the increase. The import-dependence critics can’t be wished away soon, because we still do many imports.
“However, the recent trends definitely shows that Nigeria is becoming somewhat more competitive in exporting her non-oil and manufactured goods.”
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