The Minister of Innovation, Science and Technology, Kingsley Udeh, on Friday in Abuja, 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.
“We would move from being import-dependent to being export-capable,” he said.
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.
“It will not scare investors. It will rather attract investors,” he said. Because the rule will be embedded in legislation, the minister argued, it “gives confidence to investors that we have a law that enables and encourages the value chain across all products.”
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.
“Nigeria is not lacking in ideas, we are not lacking in capacity,” he said. His goal, he added, is to ensure that research stored “cooling off in various shelves” is turned into products and services.
“The Renewed Hope Agenda would cease from just being a slogan to being a solution delivered to our doorsteps.”
Udeh said the law’s enforcement will be backed by government investment, infrastructure support, and targeted funding.
He noted that the National Bank was already preparing financing to support compliance with the new standards, calling this “one of the incentives.”
He added that a national dashboard is being developed to track raw materials across sectors and provide technical support to industry players.
On enforcement, he stated, “If you breach the law, there will be sanctions for that. And sanctions do not necessarily mean imprisonment or fines. There will be economic-related sanctions that will dissuade players from flouting this law.”
Udeh insisted that compliance aligns with the collective interest. “It will enhance their capability. It will enhance their revenue. It will boost their products and services and the market.
“It’s in our lightest self-interest across the board to see that this law is implemented to the full,” the minister concluded.
In his remarks, the Director General of the Council, Nnanyelugo Ike-Muonso, noted that upon assuming office, he committed to restoring the council as the leading agency on raw-materials development and stressed that Nigeria’s industrialisation depends on maximising local resources.
According to Ike-Muonso, the bill is anchored on two “mighty pillars”: one prohibiting the export of raw materials without “a minimum of 30 per cent value addition” and another mandating that “raw materials abundant in Nigeria must not be imported.”
He explained that the legislation aims to halt the export of unprocessed materials, stimulate manufacturing, boost employment, conserve foreign exchange, and attract investors.
The DG credited the National Assembly and the Presidency for supporting the initiative, saying the bill reflects President Bola Tinubu’s position that Africa must retain monetary value from its natural resources.
The DG also justified beginning national advocacy before presidential assent, arguing that readiness was essential for smooth implementation.
“To wait for the formal Assent before engaging stakeholders is to embrace a lag in implementation that Nigeria can no longer afford,” he said, adding that early engagement sends a strong market signal to investors and industries.
He urged manufacturers, SMEs, regulators, civil society, and state governments to begin preparing for compliance and capacity adjustments, noting that the transition represents a major structural shift.
He concluded, “This bill is not just a document. It is a declaration of Nigeria’s economic independence.”
Nigeria has long exported raw materials such as cocoa, oil, coal, and minerals with minimal local processing, limiting domestic industrial growth and employment.
Previous attempts to boost value addition often faltered due to weak enforcement, poor infrastructure, and fragmented policy coordination.
The 30 percent value-addition requirement was passed by the National Assembly after consultations with industry stakeholders and advocacy by the Raw Materials Research and Development Council.
The bill was approved by both chambers and is now awaiting presidential assent before becoming law.
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