Global Trade Reset: Why Nigeria Is the Next Stop After China
By Benard I. Odoh
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Africa Raw Materials Summit 2025
If Nigeria is to break the chains of commodity dependency and rise as a globally competitive industrial force, it must go beyond exporting raw hope and importing expensive solutions. It must root its development in policies that build local factories, retain wealth, and create decent jobs for its teeming youth. That is the bold promise embedded in the 30% Minimum Value-Addition Policy — a transformative national strategy that insists no raw material should leave Nigerian soil unless at least 30% of its value has been added locally.
For a nation that has for decades exported cocoa only to import chocolates, drilled crude oil but imported refined petrol, and mined lithium while importing batteries, this policy signals a historic shift. It promises to move Nigeria from the lowest rungs of global value chains to the threshold of meaningful industrial participation. In doing so, it sends a strong and clear message to the global market: Nigeria will no longer play the role of a raw material appendage; it seeks to become a production powerhouse in its own right.
The credibility of this policy lies in the way it has been conceptualized—not in bureaucratic isolation but through deep institutional collaboration and expert guidance. Under the forward-thinking leadership of Professor Nnanyelugo Martin Ike-Muonso, the Raw Materials Research and Development Council (RMRDC), in partnership with the African Development Bank (AfDB), has developed a comprehensive 10-year roadmap to guide the policy’s execution across Nigeria’s diverse sectors and regions. This roadmap is not a ceremonial document destined for archives; it is an actionable blueprint designed to birth factories, create livelihoods, and unlock transformative value.
Within this roadmap, sectoral targets are for instance, defined with strategic precision: 40% value addition in agro-exports, 50% in timber and wood products, and 35% in industrial minerals by the year 2030. It outlines the establishment of processing clusters across Nigeria’s six geopolitical zones—each tailored to the dominant raw materials of that region. The policy also comes embedded with a system of robust incentives, including tax holidays, preferential export financing, and input subsidies to stimulate domestic production and attract both local and foreign investment.
A notable innovation of this strategy is the proposed National Value-Addition Index, to be jointly published by RMRDC, the National Bureau of Statistics (NBS), and leading industry bodies such as the Manufacturers Association of Nigeria (MAN). This index will serve as an empirical scorecard for measuring progress in real time, ensuring transparency, accountability, and data-backed momentum throughout the policy’s lifecycle.
What elevates this policy beyond national ambition is its alignment with continental development goals. With AfDB’s support, it connects seamlessly with the vision of the African Continental Free Trade Area (AfCFTA). Nigeria, under this plan, is not positioning itself merely as a local player—it is carving a place as a Pan-African production hub capable of delivering value-added goods to a 1.3 billion-person market under preferential trade conditions. This is industrialization with vision.
The economic stakes are enormous. If implemented with commitment and rigor, the policy could double the manufacturing sector’s share of GDP—from 8.2% to at least 18% by 2035. World Bank forecasts and RMRDC’s modeling project that Nigeria could slash its import bill by more than ₦3 trillion annually, reduce its exposure to currency shocks, and generate 3 to 5 million new jobs—primarily in agro-processing, light manufacturing, and value-chain logistics. More than just a policy, the 30% value-addition mandate offers Nigeria what it has sorely lacked: a disciplined and enforceable national commitment to industrial transformation. It is not inward-looking, nor is it protectionist—it is a strategy that seeks global competitiveness from a firmer domestic foundation.
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Africa Raw Materials Summit 2025
And timing, as history shows, is everything. The world is now undergoing a seismic shift in supply chains, trade alignments, and industrial priorities. President Donald Trump’s reintroduction of sweeping tariff measures—including a flat 10% import levy and duties as high as 145% on Chinese goods—has dramatically accelerated the diversification of global manufacturing. Multinational firms, wary of overdependence on China and eager for more resilient supply bases, are actively scouting for alternative destinations. Foreign direct investment (FDI) in China’s manufacturing sector dropped by 27% in the first quarter of 2025. In contrast, Vietnam saw a 12% jump in industrial FDI, India surged by 9.7%, and Mexico—thanks to its proximity to the U.S.—secured over $18 billion in nearshoring deals.
Even some African countries have begun capturing this wave. Morocco and Ethiopia, for example, are receiving steady inflows into textile, auto component, and light manufacturing sectors. Nigeria, with its abundance of raw materials, youthful labor force, and gateway access to the ECOWAS and AfCFTA markets, ought to be leading this charge. Yet we remain on the sidelines—not for lack of capacity, but for want of strategic coherence. The 30% Value-Addition Policy, if boldly enacted and effectively enforced, could be the catalytic lever that launches Nigeria from being a passive raw material exporter into an assertive manufacturing economy.
Among the most immediate and scalable opportunities is agro-processing. Nigeria, the world’s largest cassava producer with over 63 million metric tonnes annually, still imports industrial starch and ethanol from countries like Thailand, China, and India. With targeted investment in processing hubs in cassava-rich states such as Kogi, Benue, Ogun, and Abia, Nigeria could not only meet its domestic demand but also dominate the export of high-value cassava derivatives. The same logic applies to a variety of crops—cocoa, ginger, sesame, shea, sorghum, and palm oil. Instead of exporting raw produce, Nigeria can refine, brand, and sell premium-grade products to global markets.
In the realm of light manufacturing, our advantage is demographic. With over 70% of the population under 35, Nigeria has an energetic, trainable, and underutilized labor force. With the right energy infrastructure, vocational training, and business-friendly incentives, the country can emerge as a strong player in textiles, leather, packaging, and even electronics assembly. These are not distant dreams—they are proven pathways, successfully traveled by Bangladesh, Vietnam, and Kenya within a decade.
Perhaps most critically, Nigeria sits atop vast reserves of green industrial minerals—lithium, graphite, and rare earths—essential to the global clean energy transition. These minerals currently exit our borders unrefined, leaving behind little more than environmental footprints. As global demand for electric vehicles, solar batteries, and smart devices skyrockets, Nigeria has a golden opportunity to develop refining capacity and become a central node in the battery and energy storage value chain.
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The economic and social ripple effects of realizing even a portion of this opportunity would be profound. Industrial growth does not just create jobs—it builds technical know-how, improves logistics, strengthens the naira, and decentralizes development. Local industries built on local raw materials generate pull-effects across rural economies, linking farms and mines to factories and markets. With each substitution of imports with local goods, Nigeria becomes stronger, more resilient, and more self-determined.
Yet the window is closing. Other nations are moving fast. Investors are deploying capital. Trade routes are being redrawn. If Nigeria delays, it risks watching this once-in-a-generation opportunity slip away. We must move from policy rooms to production floors—from conceptual frameworks to industrial footprints.
This is not just economic strategy. It is national redefinition. In a new world where relevance is measured not by what a country extracts, but by what it transforms, Nigeria must rise. The 30% Value-Addition Policy gives us the map. Now, we must summon the will to journey. Because in the new industrial order, power is not inherited. It is manufactured.
