Nigeria’s 30% Value-Addition Bill Poised to Reshape Industrial Policy and Attract Long-Term Investment
Nigeria’s 30% Value-Addition Bill Set to Boost Industrialisation and Attract Global Investors
The Federal Government has reaffirmed that the proposed Raw Materials Research and Development Council (RMRDC) 30% Value-Addition Bill will strengthen investor confidence, deepen industrial production, and accelerate the country’s shift from raw material export dependence to a value-driven manufacturing economy.
Speaking at a national advocacy session in Abuja, the Minister of Innovation, Science and Technology, Dr Kingsley Tochukwu Udeh, stated that the Bill currently awaiting Presidential assent will position Nigeria as a more competitive investment destination by guaranteeing predictable, value-based trade rules across key sectors.
A Structural Shift Toward Domestic Processing
The Bill seeks to amend the existing RMRDC Act by mandating that all raw materials exported from Nigeria must undergo a minimum of 30% local processing. It also restricts the importation of raw materials that are sufficiently available within the country.
According to the Ministry, the policy aims to resolve longstanding structural weaknesses in Nigeria’s industrial framework, where abundant primary resources generate limited domestic value due to low processing capacity.
Udeh emphasised that the legislation is not a barrier to foreign investment, but a platform that ensures investors participate in a more productive economy. He noted that international firms typically prefer environments where value chains are clear, regulated, and predictable.
The Bill seeks to amend the existing RMRDC Act by mandating that all raw materials exported from Nigeria must undergo a minimum of 30% local processing. It also restricts the importation of raw materials that are sufficiently available within the country.
According to the Ministry, the policy aims to resolve longstanding structural weaknesses in Nigeria’s industrial framework, where abundant primary resources generate limited domestic value due to low processing capacity.
Udeh emphasised that the legislation is not a barrier to foreign investment, but a platform that ensures investors participate in a more productive economy. He noted that international firms typically prefer environments where value chains are clear, regulated, and predictable.
“Once signed into law, this Bill will stimulate investment in processing infrastructure and create a more resilient industrial base, as investors gain confidence in a regulated value-addition environment,” the Minister said.
A Foundation for Sustainable Industrialisation
The Director-General of the RMRDC, Professor Nnanyelugo Ike-Muonso, highlighted that Nigeria’s industrialisation trajectory is tied to the effective utilisation of its domestic resource endowments. He explained that the Bill is structured around two enforceable pillars:
Export Value-Addition Requirement – No raw material can be exported without at least 30% domestic processing.
Import Restriction Pillar – Raw materials abundant within Nigeria cannot be imported for local industries.
He noted that the legislation is designed to support Nigeria’s import-substitution agenda, stimulate domestic production, and safeguard wealth creation within the country.
According to Ike-Muonso, codifying the value-addition mandate into law protects it from political volatility and ensures that stakeholders, local and international, commit to long-term investment strategies.
“The Bill reduces reliance on policy discretion. Once enacted, compliance becomes a legal obligation rather than a matter of convenience,” he stated.
Economic Implications: Jobs, GDP Growth, and Improved Trade Balance
Analysts at the event noted that the value-addition requirement is expected to strengthen Nigeria’s manufacturing ecosystem through:
Job Creation
Increased local processing will require expanded labour capacity, creating new roles across agriculture, mining, petrochemicals, logistics, and manufacturing.
Enhanced Balance of Trade
By exporting partially processed materials rather than raw commodities, Nigeria stands to capture higher margins and reduce dependence on imported finished goods.
Infrastructure Investment
Private and public sector stakeholders will need to scale power, transport, and processing facilities to meet the value-addition threshold. Investors, according to Udeh, already view this as an opportunity to deepen market participation.
Strengthened Industrial Sovereignty
The Ministry noted that Nigeria has historically exported low-value materials and re-imported high-value finished products, a pattern that undermines long-term competitiveness. The legislation aims to reverse this dynamic.
Outlook: A Legislative Catalyst for Economic Transformation
Stakeholders agree that the 30% Value-Addition Bill marks a decisive step toward repositioning Nigeria as a production-oriented economy. While implementation will require coordination across federal ministries, the private sector, and regulators, the framework is expected to provide the clarity and stability necessary for long-term planning.
If enacted and effectively enforced, the Bill could unlock a new phase of industrialisation where domestic resources drive local productivity, improve export competitiveness, and deliver broad-based economic gains.
