30% or Bust: RMRDC boss intensifies push for Nigeria’s value-addition drive

By Temi Salako

The Director-General of the Raw Materials Research and Development Council (RMRDC), Prof. Nnanyelugo Ike-Muonso, has sounded a stark warning over the personal risks tied to Nigeria’s push for industrial transformation, declaring he is determined to see at least 30 per cent of the country’s raw materials processed locally before export.

Speaking at the 10th edition of The Bullion Lecture in Lagos, Ike-Muonso revealed that he has deliberately limited international travel since assuming office due to fears for his safety, underscoring the high stakes surrounding proposed legislation on mandatory value addition.

Delivering a keynote address themed “From Resources to Prosperity: How Raw Materials Development, Value Addition and Innovation Can Catalyse Nigeria’s Industrial Renaissance,” the RMRDC boss framed Nigeria’s continued export of unprocessed commodities as a systemic economic failure.

He argued that shipping raw materials in their natural state amounts to a “slaughter” of economic potential, depriving the country of jobs, industrial depth, and higher export earnings.

The lecture, organised by the Centre for Financial Journalism, brought together policymakers, industry leaders, and academics to examine Nigeria’s structural bottlenecks. Ike-Muonso presented sobering data, including an estimated $29 billion annual loss to unreliable power supply – equivalent to about 5–6 per cent of GDP. He also highlighted logistics inefficiencies, noting that only about 30 per cent of Nigeria’s road network is paved, significantly raising transportation costs for bulk commodities and weakening competitiveness.

A central theme of the presentation was Nigeria’s weak domestic value addition (DVA) across key sectors. While industries such as cement and cassava processing have achieved relatively high local value capture, many export-oriented commodities lag far behind. Cocoa, sesame, cashew, gold, and lithium remain largely under-processed, with value addition levels in some cases below 10 per cent. Ike-Muonso stressed that this gap represents billions of dollars in lost economic opportunity annually.

Comparative insights from global peers reinforced the urgency of reform. Countries like Vietnam, China, Indonesia, and the Netherlands have successfully leveraged policy tools to boost local processing and dominate segments of global value chains. For instance, cashew processing in Vietnam approaches full domestic capture, while China controls a significant share of global lithium processing. These examples, Ike-Muonso noted, demonstrate that deliberate policy, enforcement, and infrastructure investment can rapidly transform resource-based economies.

To reposition Nigeria, the RMRDC chief outlined a multi-pronged strategy anchored on enforcement, infrastructure, market access, and incentives. He called for a shift from policy pronouncements to strict technical enforcement of processing standards, alongside prioritisation of “utilities-first” industrial corridors supported by rail and gas infrastructure. He also urged policymakers to leverage the African Continental Free Trade Area (AfCFTA) as a platform for exporting higher-value goods, rather than raw commodities.

Beyond infrastructure and policy, Ike-Muonso identified gaps in technical capacity, research and development, and quality assurance systems as critical constraints. He emphasised the need for mission-driven R&D, accredited testing laboratories, and stronger engineering capabilities to support industrial growth.

Addressing agricultural price volatility, he argued that improved processing and storage would help stabilise farmer incomes and reduce post-harvest losses.

The event concluded with a broad consensus among stakeholders that Nigeria’s resource wealth will remain a paradox without decisive movement up the value chain.

As financial institutions reaffirmed support for industrialisation efforts, Ike-Muonso’s message stood out for its urgency and personal conviction. His resolve to remain in-country and push through reforms despite perceived threats reflects the gravity of the challenge,and the stakes for Nigeria’s economic future.