Nigeria’s reliance on domestically sourced petroleum oil has surged to 54.6%, according to new data from the Raw Materials Research and Development Council (RMRDC).
This increase, reported in the council’s recently launched Quarterly Statistical Bulletin, on Friday, reflects the growing use of local resources, though experts stress the need for value addition before export.
RMRDC Director of Corporate Affairs, Chukwuma Ngaha, highlighted the data’s implications: “This growing reliance on local oil underscores the necessity of enhancing local processing capacities to maximise economic benefits.”
The first-quarter 2024 report noted that Nigeria’s value addition rate stands at just 25%. Increasing this figure, experts suggest, could significantly impact the economy, with potential boosts in employment, industrial output, and the exchange rate.
The council has called for a focus on domestic industries capable of processing raw materials before exporting them.
RMRDC Director-General, Professor Nnanyelugo Ike-Muonso, stated the importance of sustainable solutions: “Nigeria’s manufacturing sector contributes only 3% of foreign exchange earnings, while 30% of imports are raw materials that could be sourced locally.”
The report also revealed that energy imports remain a major challenge, with N1.5 trillion of Nigeria’s N2.3 trillion total imports in Q1 2024 related to energy materials. While the country is a leading exporter of raw materials such as cocoa and tin, it remains heavily dependent on processed imports.
