The Manufacturers Association of Nigeria (MAN) has renewed calls for urgent legislative action on the long-delayed value-addition bill, warning that Nigeria will continue to lose significant economic value if it remains heavily dependent on the export of raw and unprocessed commodities.
The bill, which proposes a mandatory 30 per cent local processing requirement for commodities before export, has remained before the National Assembly longer than anticipated, despite growing consensus on its strategic importance to Nigeria’s industrialisation drive.
Speaking at a media luncheon in Lagos on Wednesday, the Director-General of MAN, Segun Ajayi-Kadir, described the prolonged delay as a missed opportunity for the country to reposition its economy, deepen local manufacturing and retain more value from its natural resources.
He urged the Federal Government to work closely with lawmakers to fast-track the bill’s passage into law, stressing that Nigeria’s current export structure disproportionately benefits foreign processors at the expense of domestic industries.
Why the 30 per cent value-addition bill matters for Nigeria’s economy
Ajayi-Kadir explained that the 30 per cent value-addition bill, championed by the Raw Materials Research and Development Council (RMRDC), was conceived to reverse Nigeria’s long-standing dependence on the export of raw materials such as agricultural produce and solid minerals with minimal local processing.
According to him, this export model strips Nigeria of potential earnings, jobs and industrial growth while strengthening manufacturing bases in importing countries.
“The 30 per cent local content value-addition bill was designed to curb the export of unprocessed commodities, which continues to erode Nigeria’s potential profits,” the MAN chief said.
“As long as we export raw materials, we are exporting jobs, industrial capacity and wealth.”
He noted that while the bill has gained support among key stakeholders, its slow movement through the legislative process has delayed its intended economic impact.
MAN, he added, has been working closely with the RMRDC to sustain advocacy efforts and engage policymakers on the urgency of the reform.
Government must choose between raw exports and industrial growth — MAN
Ajayi-Kadir acknowledged concerns that enforcing local processing requirements could initially disrupt certain export flows.
However, he argued that short-term challenges should not deter Nigeria from making structural decisions that support long-term economic resilience.
“The government has to make up its mind,” he said.
“Do we want to remain a source of raw materials for other economies, or do we want to process, add value and benefit more from what we produce?”
He stressed that countries that have successfully industrialised did so by prioritising domestic processing, technology transfer and local value chains — not by exporting raw commodities indefinitely.
Economic analysts have echoed similar views, noting that value addition boosts export earnings, stabilises foreign exchange inflows and strengthens backward linkages across sectors such as agriculture, mining and manufacturing.
Nigeria First policy and procurement enforcement
Beyond the value-addition bill, MAN also reiterated its long-standing call for the effective implementation of the Nigeria First policy, particularly in public procurement and industrial development.
Ajayi-Kadir lamented that while the policy has been announced repeatedly over the years, weak enforcement has limited its impact on local manufacturers.
“We have always prioritised Nigeria First, but implementation has been the major challenge,” he said, recalling that the theme of MAN’s last annual general meeting focused on strengthening domestic patronage of locally made goods.
He disclosed that MAN has consistently submitted policy recommendations and resolutions to the Federal Government, urging stronger institutional backing for local manufacturers.
According to him, recent signals from public procurement authorities suggest renewed efforts to ensure that ministries, departments and agencies comply with Nigeria-first principles when awarding contracts.
“MAN continues to follow up on the President’s pronouncements,” he said. “It appears responsibility has now been clearly assigned to procurement authorities to ensure implementation.”
Ajayi-Kadir also confirmed that Nigeria’s new National Industrial Policy would be formally launched in February, following its soft launch earlier in January by the Minister of State for Industry, Senator John Enoh.
The policy, he said, is a comprehensive framework developed through extensive stakeholder engagement and is aimed at closing structural gaps in Nigeria’s economic architecture.
“What we know is that the new industrial policy will be launched in February,” he said. “It is a document we are proud of and are eager to see implemented.”
He revealed that MAN played a central role in drafting the policy through the Industrial Revolution Working Group, chaired by Senator Enoh and co-chaired by MAN President Francis Meshioye.
The framework is expected to prioritise job creation, productivity, export competitiveness and sustainable industrial growth.
Manufacturers warn against further delays
Industry experts warn that continued delays in passing the value-addition bill could undermine the objectives of the new industrial policy, particularly as Nigeria seeks to diversify away from oil dependence and stabilise its economy.
For MAN, the message is clear: without enforceable local processing requirements, Nigeria risks remaining trapped in a low-value export cycle that limits growth and exposes the economy to external shocks.
As lawmakers resume deliberations, manufacturers are urging swift action, insisting that the cost of inaction far outweighs the challenges of reform.
About The Author
