The Federal Government has taken a firm stance against the export of Nigeria's mineral resources in their raw, unprocessed state. It has declared that investors and exporters must now establish local processing facilities within the country before shipping materials abroad.
New Legislation Awaits Presidential Approval
This significant policy shift was announced by the Minister of Innovation, Science and Technology, Dr. Kingsley Udeh, during a national advocacy conference organized by the Raw Materials Research and Development Council (RMRDC) in Abuja. The minister revealed that a crucial bill, already passed by the National Assembly, is currently awaiting the assent of President Bola Tinubu.
This proposed law will legally mandate that investors process a minimum of 30% of Nigeria's minerals locally before they can be exported. Dr. Udeh emphasized that the policy is designed to halt the long-standing practice of shipping out raw materials in their natural form, which deprives the nation of potential value and jobs.
Penalties for non-compliance have been clearly outlined within the bill, encouraging companies to set up the necessary processing infrastructure within Nigeria's borders.
Economic Benefits of Local Value Addition
The government's core objective with this move is to transform Nigeria's economic model. Dr. Udeh explained that the policy will help shift the country from an import-dependent system to a more productive, export-oriented economy. The anticipated benefits are substantial and multi-faceted:
- Job Creation: Establishing local processing plants will generate significant employment opportunities across various sectors.
- Increased Foreign Exchange: Exporting processed, higher-value goods will earn Nigeria more foreign currency compared to raw material exports.
- Economic Growth: The policy is expected to stimulate broader industrial and economic development.
Dr. Udeh, who recently joined the federal cabinet, stated that his leadership will focus on strengthening the innovation and technology ecosystem to support this transition, helping to turn research into commercial products.
Focus on Strategic Minerals Like Lithium
The policy comes at a time when global interest in Nigeria's mineral resources, particularly lithium, is surging. Nigeria's lithium reserves, a key component for electric vehicle batteries and renewable energy storage, are estimated to be worth over $34 billion.
Speaking alongside the minister, the Director-General of RMRDC, Prof. Nnanyelugo Ike-Muonso, stated that the 30% Value-Addition Bill is designed to compel both local and international stakeholders to invest in Nigerian-based processing and manufacturing facilities. This is already gaining traction, with the government noting that two lithium processing plants are operational and a third is under construction.
This strategic move aims to ensure Nigeria captures a larger share of the global value chain for its critical resources, moving beyond being just a source of raw materials to becoming a participant in the lucrative processing and manufacturing stages.
