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This effort is intended to close data gaps and empower stakeholders to make informed decisions that will propel the country’s industrialization. Photo: Samuel Adeyinka/Radio Nigeria
The Raw Materials and Research Development Council (RMRDC) has introduced its inaugural quarterly statistical bulletin in Abuja, aiming to boost Nigeria’s industrial development.
This initiative is designed to provide data-driven insights and actionable information to support local sourcing and investment in raw materials.
The publication delivers comprehensive data on critical economic indicators such as Nigeria’s foreign trade, raw material processing, and utilization rates.
A Tool for Industrial Advancement
The Quarterly Statistical Bulletin Series is structured to offer essential insights into the availability, sourcing, and utilization of raw materials within Nigeria. It serves as a valuable resource for businesses and policymakers to strengthen and sustain the industrial sector.
According to Prof. Nnanyelugo Ike-Muonso, Director General of RMRDC, “Nigeria’s manufacturing sector contributes only about 3% to the nation’s foreign exchange earnings, with over 30% of the import bill linked to raw materials and intermediate goods that could be locally sourced.”
Prof. Ike-Muonso described this situation as unsustainable, emphasizing the need to promote local sourcing, harness abundant natural resources, and develop innovative value chains for rapid economic growth.
Objectives of the Bulletin
- The Quarterly Statistical Bulletin Series is targeted at several key stakeholders:
- Government Policymakers: Offering data-driven strategies to enhance local sourcing, domestic manufacturing, and industrial development.
- Investors: Highlighting emerging opportunities in Nigeria’s resource-based industries.
Industrialists: Providing data to optimize local raw material usage, foster innovation, reduce costs, and boost competitiveness. - Academia: Supplying valuable research material for studies in material sciences, engineering, and industrial development.
- Organized Private Sector: Facilitating collaboration between the private sector, government, and other stakeholders to promote industrial growth.
Prof. Ike-Muonso said the council partnered with the Nigeria Customs Service, the Manufacturers Association of Nigeria (MAN), and other stakeholders who supported the development of the data for the Raw Materials Statistical Bulletin.
Trade Performance Insights
The Quarterly Statistical Bulletin offers a detailed review of Nigeria’s trade performance for the first three quarters of 2024, focusing on imports, exports, agricultural raw materials, and import substitution opportunities.
In the first quarter of 2024, total imports amounted to N2.3 trillion.
Energy and Construction Materials
The report identifies key imports such as petroleum jelly, sulfur, kaolin, and oils. The energy and construction sectors are heavily reliant on imports, with energy materials alone accounting for over N1.5 trillion. This underscores the significant dependence on foreign sources for essential raw materials, particularly in the energy sector.
Nigeria’s raw materials export trade totaled N3.9 trillion in the same period, featuring exports like petroleum oils, natural gas, and minerals such as quartz, titanium ores, and bituminous coal. These figures highlight Nigeria’s crucial role in global mineral and energy resource supply chains.
Leading Raw Materials
Agricultural raw materials remain vital to Nigeria’s trade. In the first quarter of 2024, agricultural exports reached N226 billion, led by cocoa beans, cashew nuts, and sesame seeds. However, agricultural imports totaled N1.1 trillion, driven by the demand for food supplements, milk preparations, and palm oil. Analysts suggest this imbalance points to the need for improved local processing capabilities to meet demand and leverage Nigeria’s agricultural potential.
The report also identifies opportunities for import substitution, highlighting sectors where increased local production could be beneficial. Examples include cocoa derivatives, ginger products, and refined tin and zinc.
Utilization of Raw Materials
Nigeria’s local raw material utilization rates vary. Petroleum oil is the most utilized mineral at 54.6%, followed by cement, bituminous coal, and tin ores. In agriculture, cane sugar shows the highest local utilization at 56.1%. The report emphasizes that increasing local processing could reduce import reliance and spur significant economic growth.
Economic Value Addition
The report underscores the economic impact of value addition during the period under review. Currently, Nigeria’s value addition rate stands at 25%, with projections suggesting that increasing this rate could lead to a 15.6% rise in employment, a 2.2% boost in industrial output, and a 21.25% improvement in the exchange rate against the dollar.
Prof. Ike-Muonso noted that in Q1 2024, Nigeria spent over N1.06 trillion on agricultural raw material imports, with energy materials making up over N2 trillion. These figures highlight the importance of energy and agricultural inputs to Nigeria’s trade balance and the potential for enhanced self-reliance through local production.
Opportunities for Growth
The Director General of RMRDC said that the data presents significant opportunities for Nigeria to reduce its reliance on imports, particularly in the agricultural and raw materials sectors and creating jobs, and enhance economic stability.
Reporting by Samuel Adeyinka; Editing by Oluwaseyi Ajibade and Adeniyi Bakare