Nigeria spent ₦3.53 trillion on raw material imports in the first half of 2025, driven by rising demand in manufacturing and structural gaps in local supply.
According to data from the National Bureau of Statistics, raw material import bills rose by 19.7 percent compared to the same period last year (from about ₦2.95 trillion in H1 2024).
Industry stakeholders note that as much as 70 percent of inputs for manufacturing are still imported, highlighting Nigeria’s continued dependence on foreign-sourced materials.
The increase undermines government efforts to promote import substitution and local industrialization. The Lagos Chamber of Commerce and Industry (LCCI) and Manufacturers Association of Nigeria (MAN) both warned that repeated import dependency restricts the growth of domestic supply chains.
Manufacturers cite challenges such as high energy costs, currency volatility, weak local processing capacity, and limited access to technology as key barriers to sourcing materials locally.
To address the imbalance, the Raw Materials Research and Development Council (RMRDC) has been granted authority to offer tax incentives for manufacturers who use locally sourced inputs—a bid to shift the production equation.
Analysts say that unless Nigeria closes the gap in local raw material availability, its industrial sector will remain vulnerable to supply shocks, foreign exchange pressure, and cost escalations.
