The federal government has often touted the idea of diversifying the economy by deepening investment in the development of the raw materials sector, which would make Nigerian products globally competitive.
The potential for commercialising and processing Nigeria’s products into finished goods, aimed at ending overreliance on imported processed products, is good. Still, the challenge has been obtaining suitable investment to revamp the sector.
The Ministry of Innovation, Science and Technology recently unveiled a 10-year roadmap to boost the sector, stressing that it aims to achieve 60 per cent value addition by 2034.
This initiative is piloted by the Raw Material Research and Development Council (RMRDC), which will collaborate with Development Partners, the Diplomatic Community, and Business Councils to make the dream a reality.
The benefits of improving the value of Nigeria’s raw materials before export cannot be overemphasised, considering its far-reaching impact on job creation, domestic manufacturing growth, and the Naira.
It is on record that Nigeria has a meagre 25 per cent value addition, which is unacceptable. It is, therefore, incumbent on the government and the agencies concerned to refocus, and reorganise the sector to unlock the immense potential of Nigeria’s raw material sector.
The 10-year roadmap, developed in collaboration with the African Development Bank, outlines key strategic interventions. These include building critical capacity in circularity and repurposing to ensure efficient raw material utilisation and waste reduction.
The plan also aims to develop relevant database and management information systems to provide researchers, investors, and industry leaders with access to real-time data.
Much effort is also being made to upgrade raw material testing laboratories and associated technology/machine development workshops, which will advance research, testing, and technology innovation.
It is evident that Nigeria’s raw materials sector holds vast economic growth potential and creates a resilient, self-sustaining industrial base that benefits all Nigerians. However, lack of investment has rendered the sector with little value and made the country a dumping ground for all manner of imported processed products.
Nigeria’s current economic downturn is enormous, and it has affected foreign exchange earnings and industrial output, among other things.
Nigeria has one of the world’s highest deposits of iron ore needed for steel production, but the country’s steel industry is struggling. Despite having one of the largest steel plants in Africa, the Ajaokuta steel complex, it has not produced a single slab of steel since its inception in over 40 years. This pathetic situation cannot be allowed to continue, especially now that the nation needs to diversify every sector.
Nigeria’s cocoa has always been one of the best in the world. Still, value addition has remained a mere dream as successive government policies have not addressed the issue of building processing plants to turn cocoa into chocolates and allied products, which are the mainstay of the economies of some European and North American countries.
Nigeria can only process about 0.1 per cent of its cocoa beans into chocolate. With a capacity of 340,163 tonnes, Nigeria has failed to exploit its vast potential in the cocoa value chain, losing a reported average of $2 billion every year.
Poor access to machinery, lack of funding, difficult environment, and lack of access to capital and packaging have been the most challenging obstacles to cocoa processing into chocolate in Nigeria.
Going by RMRDC’s mission, which is “to promote the development and optimal utilisation of Nigeria’s raw materials for sustainable industrial growth,” we believe it has become imperative for the government to review previous policies on raw materials development and create an enabling environment to attract more investors and transform the sector.
Some of the critical aspects of the 10-year roadmap, which will define the future of RMRDC and the sector at large, include the Raw Material Management Information System, Research and Demonstration Plant Complex (RDPC), Circularity and Repurposing of Raw Materials, and Chemical Markets and Policy Center.
Through these aspects, the government can develop and upgrade a comprehensive management information system with several interconnected databases to support researchers, investors, and industry stakeholders. This platform will house critical data on raw materials, enabling informed decision-making and facilitating investment.
It would be assuring to imagine a future in which Nigeria’s raw materials form the backbone of a dynamic, resilient, and sustainable economy.
We believe that lifting millions of people out of poverty will require harnessing Nigeria’s vast natural resources and developing them into manufacturing, industrialisation, and new technology. But these are not done by exhortation but by deliberate policies targeted to increase growth and focused policy implementation.
It is heartwarming that the African Development Bank (AfDB) has identified critical areas and expressed willingness to support African countries with massive investments to boost their industrial capacity.
As a newspaper, we dare to hope that there will be policy consistency and judicious utilisation of resources to achieve these laudable objectives.
