Nigeria will no longer export raw minerals without local processing — FG

The Federal Government has insisted that Nigeria will no longer continue the long-standing practice of exporting raw minerals without meaningful local processing, as the proposed 30% value-addition law moves closer to presidential assent.

Minister of Innovation, Science and Technology, Kingsley Tochukwu Udeh, while speaking to Tribune Newspaper in an exclusive interview, said the new legislation will compel all companies operating in Nigeria to add at least 30% value to any raw material before it leaves the country, ending decades of economic losses tied to unprocessed exports.

Udeh also explained that the law is designed to ensure that Nigeria retains a significant portion of value from its natural resources.

According to him, “before any of our natural wealth in the form of raw materials is taken out of our country, at least 30% value shall be added to such resources.

“This improves local content, enhances the capacity of Nigerians, and increases our ability to depend on our own innovators and engineers.”

He insisted that the country can no longer afford to ship out raw minerals only to import them back as finished products.

Using lithium as an example, the minister said Nigeria currently exports minerals “in their rawest form”, a trend that will no longer be permitted under the new legal regime.

“Most of our lithium is exported exactly as it is. With this law, we will move from exporting lithium ore to producing lithium concentrate and lithium salt. Nigerians will be the ones adding that value here. That means jobs, infrastructure, and increased capacity,” he said.

He linked this persistent problem to Nigeria’s experience with cocoa, lamenting that the country exports beans cheaply and buys back chocolate at high prices.

“We export cocoa beans and buy back chocolate at exorbitant prices. That must stop. This law will ensure we no longer give away our wealth cheaply.”

Describing the 30% mandate as one of the most significant industrial reforms in Nigeria’s history, Udeh said it will reposition the country from an import-dependent economy to one capable of competing globally.

“We will move from being import-dependent to being export-capable. It will lead to import substitution, increase GDP, improve our balance of trade, and stop the bleeding of jobs.”

He noted that the value-addition requirement will differ from one mineral to another, stressing that technical experts will determine what constitutes 30% for each resource.

Udeh dismissed concerns that the law could discourage investors, insisting instead that it will attract more foreign participation. “Some critics say it will scare investors. It will rather attract investors. This is legislation, not mere policy. Investors want a country where value chains are protected by law.”

According to him, companies that previously exported raw minerals would now be incentivised to establish processing plants in Nigeria, thereby expanding the industrial base and creating new markets.

The minister also announced that government will provide the necessary infrastructure and financial support to ensure successful implementation.

He referenced commitments from agencies such as NEXIM Bank. “If we are talking value addition, we must provide infrastructure. This law will not be on paper; it will be implemented.”

Udeh confirmed that strict sanctions await defaulters once the law comes into force. “There will be sanctions,  imprisonment, fines, and economic penalties. This law cannot be flouted.”

He described the proposed legislation as a national asset aligned with President Bola Tinubu’s industrialisation agenda.

“Everyone will support this law for the greater good of Nigeria. It is in the interest of investors, industries and our nation. The world wants to see Nigeria implement this.”

Udeh added that the reform will deepen domestic production, expand job opportunities and strengthen national sovereignty. “Whatever leaves Nigeria from now on must have value. That is dignity and sovereignty for us as a nation.” He said.