By David Akinmola
Economists have intensified calls for Nigeria to prioritise local value addition across key sectors of the economy, warning that continued reliance on imported finished goods is driving up costs, weakening the naira, and constraining sustainable growth.
The experts argued that despite Nigeria’s vast resource base, the country still exports largely raw materials while importing processed goods at significantly higher prices a trend they say is worsening the trade balance and exposing the economy to external shocks.
According to development economist, Ayo Teriba, Nigeria must urgently shift from a consumption-driven import model to a production-led economy anchored on domestic processing and manufacturing.
“We cannot continue to export raw commodities and import finished products at a premium. Value addition within the country is the only sustainable way to reduce import costs and strengthen the economy,” he said.
Industry analysts note that Nigeria spends billions of dollars annually on imports of refined petroleum products, processed foods, pharmaceuticals, and industrial inputs many of which could be produced locally with the right policy environment and infrastructure.
They stressed that building local capacity would not only reduce import bills but also create jobs, stimulate industrial growth, and improve foreign exchange earnings.
Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Chinyere Almona, said improving value addition requires targeted investment in infrastructure, particularly power, logistics, and technology.
“Local production cannot thrive in an environment where the cost of doing business is high. Addressing structural challenges is key to unlocking value addition and reducing dependence on imports,” she said.
Economists also highlighted the need for consistent industrial policies that support small and medium-sized enterprises (SMEs), which play a critical role in processing and manufacturing activities.
They argued that access to affordable finance, stable regulatory frameworks, and incentives for local producers are essential to driving growth in the sector.
The push for value addition comes amid persistent pressure on Nigeria’s foreign exchange reserves and the naira, with import demand continuing to outpace export earnings.
Analysts say reducing import dependence through local production could help stabilise the currency by lowering demand for foreign exchange while boosting non-oil exports.
In addition, stakeholders emphasised the importance of strengthening backward integration in industries such as agriculture, solid minerals, and manufacturing to ensure that raw materials are processed locally before export.
A manufacturing sector operator noted that Nigeria has the capacity to become a regional production hub if the right investments are made.
“We have the resources and the market. What is needed is the political will to support local industries and ensure that value is created within the country,” the operator said.
While recent policy efforts have sought to encourage domestic production, economists insist that more coordinated action is required to achieve meaningful results.
They warned that without a deliberate focus on value addition, Nigeria risks remaining trapped in a cycle of exporting low-value raw materials and importing high-value finished goods—an imbalance that continues to strain the economy.
As the debate continues, stakeholders agree that promoting local value addition is not just an economic option but a necessity for achieving long-term resilience, reducing import costs, and positioning Nigeria for sustainable industrial growth.
