In a strategic move aimed at fostering local sourcing and enhancing investments in raw materials, the Raw Materials Research and Development Council (RMRDC) has unveiled its much-anticipated Quarterly Statistical Bulletin series.
This publication aims to provide in-depth data on critical economic indicators, such as Nigeria’s foreign trade, raw materials processing, and utilisation rates, addressing current data gaps and enabling stakeholders to make informed decisions to drive the country’s industrialisation forward.
The Quarterly Statistical Bulletin series is designed to offer valuable insights into the availability, sourcing, and utilisation of raw materials within Nigeria. It provides accessible information that will assist businesses and policymakers in building a stronger, more sustainable industrial sector.
Director-general of RMRDC, Prof. Nnanyelugo Ike-Muonso emphasised the importance of local sourcing to reduce Nigeria’s dependence on imports. He noted, “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. This situation is unsustainable and we believe the solution lies in promoting local sourcing, harnessing our abundant natural resources and developing innovative value chains.”
The Quarterly Statistical Bulletin series serves a wide array of stakeholders, including:
- Government Policymakers: Offering data-driven guidance to promote local sourcing, domestic manufacturing, and industrial development.
- Investors: Identifying emerging opportunities within Nigeria’s resource-based industries.
- Industrialists: Providing industries with data to optimise the use of local raw materials, stimulate innovation, reduce costs and increase competitiveness.
- Academia: Offering valuable research material to enhance studies in material sciences, engineering and industrial development.
- Organised Private Sector (OPS): Encouraging collaboration between the private sector, government and other stakeholders to promote industrial growth.
The RMRDC DG also expressed gratitude to key partners, including the Nigeria Customs Service (NCS), the Manufacturers Association of Nigeria (MAN) and other stakeholders who contributed to the production of this vital initiative.
The inaugural bulletin provides detailed insights into Nigeria’s trade performance for the first three quarters of 2024. It covers imports, exports, agricultural raw materials and the opportunities for import substitution.
Total imports for Q1 2024 amounted to N2.3 trillion, with petroleum jelly, sulfur, kaolin, and oils being key imports. The energy and construction sectors were the largest consumers of imports, with energy materials alone accounting for over N1.5 trillion. This highlights Nigeria’s heavy reliance on foreign sources for crucial raw materials, particularly in the energy sector.
In contrast, Nigeria’s raw materials exports totaled N3.9 trillion during the same period. Major exports included petroleum oils, natural gas, and minerals like quartz, titanium ores and bituminous coal. These robust export figures emphasise Nigeria’s significant role in global mineral and energy resource supply chains.
Agricultural raw materials continue to be essential in Nigeria’s trade. In Q1 2024, agricultural exports amounted to N226 billion, led by cocoa beans, cashew nuts and sesame seeds. However, agricultural imports reached N1.1 trillion, driven by the need for food supplements, milk preparations and palm oil. This imbalance points to the need for enhanced local processing capabilities to meet demand and leverage Nigeria’s agricultural potential.
Director of corporate affairs at RMRDC, Chukwuma Ngaha stated that the report identifies key opportunities for import substitution, highlighting sectors where Nigeria could reduce its reliance on imports. For instance, despite being a major exporter of cocoa, Nigeria still imports cocoa derivatives such as cocoa powder and butter. Similarly, ginger and tin/zinc also present opportunities for increased local production and value addition.
The report also provides a breakdown of Nigeria’s raw material utilisation rates. Petroleum oil tops the list, with a utilisation rate of 54.6 per cent, followed by cement, bituminous coal, and tin ores. In the agricultural sector, cane sugar shows the highest local utilisation at 56.1 per cent. The report stresses the potential benefits of boosting local processing, which could help reduce import dependence and unlock significant economic growth opportunities.
In terms of the economic impact of value addition, the report notes that Nigeria’s current value addition rate stands at 25 per cent. Projections suggest that increasing this rate could lead to a 15.6 per cent rise in employment, a 2.2 per cent increase in industrial output, and a 21.25 per cent improvement in the exchange rate against the dollar.
The report further highlights that Nigeria spent over N1.06 trillion on importing agricultural raw materials in Q1 2024, with energy materials accounting for over N2 trillion of the total expenditure. These figures underscore the critical importance of energy materials and agricultural inputs to Nigeria’s trade balance and illustrate the potential for greater self-reliance through local production.
Overall, the data presented in the bulletin sheds light on the significant opportunities for Nigeria to reduce its reliance on imports, particularly in the agricultural and mineral raw material sectors. By enhancing local processing capabilities and focusing on value addition, Nigeria can drive industrial growth, create jobs, and improve its economic stability. The Quarterly Statistical Bulletin series is a timely and critical initiative to support Nigeria’s industrialisation journey.
