By Rukayat Moisemhe
Economic experts have stressed the imperativeness of accelerated value addition, industrialisation and policy coherence to reposition Nigeria’s economy and insulate it from global shocks.
They made this known at the Bullion Lecture 10th edition by the Centre for Financial Journalism on Thursday in Lagos.
The event has the theme: “From Resources to Prosperity: How Raw Materials Development, Value Addition and Innovation Can Catalyse Nigeria’s Industrial Renaissance.”
The Chairman, Alliance for Economic Research and Ethics, Mr Kelvin Oye, said ongoing geopolitical tensions involving Iran, the United States and Israel had heightened volatility in global supply chains.
Oye said the crisis had triggered fluctuations in energy prices, disrupted trade routes and intensified inflationary pressures, with adverse implications for Nigeria’s import-dependent economy.
He, however, noted that the situation presented opportunities for resilience if Nigeria accelerated its transition to a production-driven economy.
“To ameliorate the impact of this global turbulence, Nigeria must look inward. We must accelerate our transition from a consumption-driven economy to a production driven one.
“By localising our supply chains, enhancing our domestic manufacturing capabilities, and fiercely pursuing value addition, we can insulate our economy from external shocks and secure the livelihoods of our citizens,” he said.
Oye commended current government policies aimed at promoting value addition, including export restrictions on raw materials, proposed minimum value-addition thresholds and tax incentives.
He added that access to affordable financing, particularly single-digit loans through institutions such as the Bank of Industry and NIRSAL Microfinance Bank, was critical to nurturing emerging industrialists.
Oye also urged the government to ensure that the operational environment for the over 400 licensed Export Processing Zones is seamless.
Prof. Nnanyelugo Ike-Muonso, Director-General, Raw Materials Research and Development Council, said industrialisation had become imperative for Nigeria, noting that manufacturing currently accounts for only eight to 10 per cent of Gross Domestic Product.
Ike-Muonso identified structural barriers to industrial growth, including energy deficits, weak infrastructure, logistics constraints and skills gaps in process engineering and materials science.
According to him, unreliable power supply results in about $29 billion in annual economic losses.
Ike-Muonso also highlighted poor road infrastructure, with only about 30 per cent of the network paved, as a major contributor to high logistics costs.
He emphasised the need for policy alignment, improved infrastructure and stronger linkages across value chains to drive industrial transformation.
“Industrialisation is not optional. We must move from extraction to value creation and build a resilient, competitive economy,” he said.
He listed key policy catalysts to include a 30 per cent value-addition mandate on exports, infrastructure and energy reforms, digital systems and opportunities under the African Continental Free Trade Area.
He urged the government to prioritise enforcement of policies, develop utilities-focused industrial corridors and incentivise research and development to boost local capacity.
Prof. Akpan Ekpo, Chairman, Board of Trustees of the centre, said the lecture had evolved into a major platform for intellectual discourse, influencing policy, governance and socio-economic transformation.
Ekpo said the forum had consistently addressed critical national issues, ranging from economic stability and sustainable growth to innovative financing for tertiary education and industrial development through value addition.
“Our vision is to ensure that the Bullion Lecture remains a beacon of knowledge, driver of policy innovation and a catalyst for socio-economic transformation,” he said.
He reaffirmed the centre’s commitment to strengthening capacity building and sustaining the lecture as a driver of national development.
HRH Jacob Esan, Chief Executive Officer of Geo Fluids Plc, identified weak linkage between finance and resource potential as a major market failure hindering Nigeria’s economic growth, urging a shift towards data-driven investment strategies.
Esan noted that although Nigeria was endowed with critical minerals such as lithium and nickel, inadequate and unreliable data on the quantity and quality of these resources continues to limit their optimal exploitation and value creation.
He said prioritising comprehensive geospatial analysis and objective quantification of solid mineral deposits would provide bankable data capable of attracting foreign direct investment and strengthening investor confidence.
Esan was represented at the event by the Managing Director, Calyx Securities Ltd., Mr Gholahan Bello.
The News Agency of Nigeria (NAN) reports that event also featured the presentation of a book titled “Pathways to Nigeria’s Socio-Economic Transformation.” (NAN) (www.nannews.ng)
Edited by Chinyere Joel-Nwokeoma
