The Raw Materials Research and Development Council has revealed that Nigeria’s dependence on locally sourced petroleum oil has risen to 54.6 per cent.
This update was shared on Friday by the council’s Director of Corporate Affairs, Chukwuma Ngaha.
In a statement, the council emphasized the growing use of domestic resources while underscoring the urgent need for more extensive value addition to raw materials before they are exported.
The announcement coincided with the launch of the RMRDC’s Quarterly Statistical Bulletin Series, which provides critical insights into Nigeria’s raw material usage, trade dynamics, and economic prospects.
The report, covering data from the first quarter of 2024, highlighted petroleum oil as Nigeria’s most utilized mineral resource.
However, it also pointed out the necessity of boosting local processing efforts and value enhancement.
“Currently, Nigeria’s value addition rate stands at 25 per cent, with projections indicating that increasing this rate could lead to a 15.6 per cent rise in employment, a 2.2 per cent boost in industrial output, and a 21.25 per cent improvement in the exchange rate against the dollar,” the report stated.
To bridge the gap between raw material exports and domestic consumption, the council called for the establishment of local industries capable of adding value to resources prior to export.
The RMRDC’s Director-General/CEO, Prof. Nnanyelugo Ike-Muonso,highlighted the urgency of addressing these challenges, stating, “Nigeria’s manufacturing sector contributes only about 3 per cent of the nation’s foreign exchange earnings, while over 30 per cent of our import bill is linked to raw materials and intermediate goods that could otherwise be sourced locally.”
The report also underscored the country’s ongoing reliance on imports, particularly within the energy sector.
Data revealed that total imports in the first quarter of 2024 amounted to N2.3 trillion, with energy materials accounting for over N1.5 trillion of this figure.
This dependency underscores Nigeria’s vulnerability to external supply chains and the need to maximize the utilization of its domestic resources.
In addition to petroleum, the report noted the significant role of agricultural and mineral raw materials in Nigeria’s trade profile.
While agricultural exports totaled N226 billion in Q1 2024, imports in the sector reached N1.1 trillion.
Despite being a major exporter of raw commodities like cocoa, ginger, and tin, the nation still heavily depends on imports of their processed forms, such as cocoa butter and ginger powder.
The RMRDC stressed that strengthening local processing capabilities is essential for Nigeria’s economic stability and growth.
“By enhancing local processing capabilities and focusing on value addition, Nigeria can drive industrial growth, create jobs, and strengthen its economic stability,” the report noted.
This initiative is part of the council’s broader mission to encourage stakeholders across various industries to make informed decisions that will foster industrial development and reduce Nigeria’s dependency on imports.
