Nigeria's 30% Value Addition Plan to Boost Economy

Nigeria's recent push for local processing of raw materials has reignited discussions on funding and value addition at the AFC Summit in Nairobi, Kenya. The federal government plans to mandate at least 30% value addition on raw material exports by November 2025, a move described by Minister of Innovation, Science, and Technology, Kingsley Udeh, as essential for industrialization.

Udeh emphasized the need to process Nigeria's natural wealth domestically rather than exporting it in its rawest form. Aliko Dangote highlighted the detrimental effects of exporting raw materials while importing finished goods, which exacerbates unemployment.

The AFC's report indicates that Africa's capital issues stem from a failure to channel available savings into productive assets. Samaila Zubairu, AFC President and CEO, noted that Nigeria's domestic savings, particularly from the pension industry, have not been effectively utilized for infrastructure development.

The government's strategy aims to retain value chains within Nigeria, addressing the disconnect in infrastructure and fostering an industrial ecosystem.