By Jamila Shuaibu And Nafisat Abdulrahman
The need to strengthen local sourcing and promote import substitution as key drivers of supply chain efficiency in Nigeria’s raw materials sector took centre stage at the Raw Materials Research and Development Council (RMRDC) Fortnightly Lecture Series.
The lecture, titled “Local Sourcing and Import Substitution as Catalysts for Supply Chain Efficiency in Nigeria’s Raw Materials Sector,” was delivered by the Deputy Director, Process Equipment Maintenance Division (PEMD), of the Research & Demonstration Plant Complex (RDPC) , Engr. Obassi Ettu, on March 19th 2026 at the RMRDC headquarters in Abuja.
Engr. Obassi listed weak domestic supply chains, increased production costs and exposure of industries to foreign exchange volatility and global disruptions as the result of Nigeria’s continued dependence on imported industrial output. He noted that sourcing raw materials locally can reduce logistics costs, shorten supply distances and strengthen collaboration between producers and manufacturers, while import substitution encourages the development of domestic alternatives to imported goods.
He said that despite Nigeria’s abundant agricultural and mineral resources, many industries still depend heavily on imported materials such as industrial chemicals, starch, ethanol and steel products. This shows that the country has not fully utilized its available resources. He described the raw materials sector as very important to Nigeria’s industrial development, covering agricultural products, solid minerals, hydrocarbon resources and new bio-based materials. However, the sector is still underdeveloped because there is limited value addition, weak collaboration between researchers and industries, and inadequate processing facilities.
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Engr. Ettu explained that supply chain management involved the coordinated planning, sourcing, production and delivery of materials and products, stressing that collaboration among stakeholders and the adoption of modern technologies make supply chains efficient. He added that global disruptions such as the COVID-19 pandemic exposed the vulnerability of international supply chains and proved the need for stronger domestic production networks.
Using historical context, he noted that before the colonial period, Nigeria relied largely on locally sourced materials but the economy later shifted toward export of primary commodities. Import substitution policies were introduced after independence, while economic reforms in the 1980s encouraged trade liberalization. Using countries such as Brazil, Malaysia, China and South Africa as examples, he said successful industrialization depends on building strong domestic supplier networks supported by consistent policies.
He also highlighted the role of RMRDC in promoting the development and utilization of local raw materials through research coordination, policy advisory services, raw material mapping and industrial linkage programmes. The Council has supported several initiatives across manufacturing sectors, including the replacement of imported barley with locally produced sorghum in the food and beverage industry, alternative livestock feed formulations, and value addition projects involving commodities such as cocoa, sesame, ginger and honey.
Engr. Ettu emphasized the need for supportive policies such as incentives for backward integration, improved access to finance for local suppliers, stronger quality standards and increased collaboration between government, industry and research institutions. He concluded that strengthening local sourcing and import substitution would help build resilient supply chains, conserve foreign exchange and enhance Nigeria’s industrial competitiveness.
The lecture formed part of RMRDC’s ongoing efforts to promote research-driven discussions on strategies for advancing Nigeria’s industrial and raw materials development.
