Director-General of Lthe Raw Materials Research and Development Council (RMRDC), Prof. Nnanyelugo Ike-Muonso, has said Nigeria's industrial transformation depends on a decisive shift from raw material exports to value addition, innovation and stronger domestic processing capacity.
Speaking at the 10th Bullion Lecture organised by the Centre for Financial Journalism in Lagos, themed: "From Resources to Prosperity: How Raw Materials Development, Value Addition and Innovation Can Catalyse Nigeria's Industrial Renaissance," Ike-Muonso said countries that industrialised successfully prioritised value addition.
According to him, Nigeria remains trapped in a low-value export structure where raw commodities are shipped abroad with minimal processing, while advanced economies capture most of the gains.
He warned that without a deliberate shift to deeper processing, the country will continue to lose value, jobs and foreign exchange.
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"Value addition is the bridge between resources and prosperity. If we continue to export raw materials without processing, we are exporting jobs and importing poverty," he said.
He added that transforming raw materials into finished products is the most sustainable pathway to long-term prosperity. "Each stage of the value chain multiplies value, creates jobs and strengthens income generation."
The DG cautioned that the African Continental Free Trade Area (AfCFTA) would deliver little benefit if Nigeria remains a raw material exporter.
"AfCFTA cannot work for us if we remain a raw material exporting economy. The 30 per cent minimum value addition framework must succeed first," he said, noting the bill is still under legislative consideration.
He identified key barriers to industrial growth, including weak energy supply, poor logistics, low engineering capacity and limited technology.
"The biggest barrier is capability. Without knowledge and speed of execution, resources alone cannot transform an economy," he stated.
