Nigeria’s continued export of raw commodities remains a “big shame,” according to business analyst Chika Mbonu, who argues that decades after independence, the country should have moved beyond shipping unprocessed goods abroad. He insists that real economic growth lies in processing raw materials locally into high-value finished products that can generate more foreign exchange, create jobs, and strengthen domestic industries.
Speaking in an interview with ARISE News on Thursday, Mbonu did not mince words while reacting to the Federal Government’s decision to extend the ban on the export of raw shea nuts.
Responding to a question on the fiscal decision to halt the export of shea nuts for another year, he said “That is still a big shame to a country that, you know, after multiple years of independence, was still exporting raw material commodities out of this country.”
He stressed that Nigeria must deliberately build industries capable of transforming locally sourced raw materials into finished products.
“You know, it’s still a big shame, you know, that we’re not going to be able to develop industries, so I encourage investors to invest in industries in Nigeria that can process this locally sourced raw materials into high-value finished goods, you know, so that you can increase the value addition.”
Explaining the economic advantage of value addition using shea products as an example, Mbonu stated “Now, the value addition, when it’s done, will get more effects, at least 10 to 20 times more foreign exchange for a country that’s just exporting their raw materials.”
He added that the benefits go beyond foreign exchange earnings. “Of course, you know the other advantages of this, employment creation for our country, higher tax.”
Clarifying the intention behind the government’s policy, he said: “Basically, so this is what the government is saying, we want to ban this exportation, so to reduce the incentive for people to just carry raw materials and export, and so that people can invest locally in the manufacturing plants, to move from shea nuts to shea butter, that has a lot more value added.”
Mbonu’s remarks underscore a long-standing structural concern in Nigeria’s economy the persistent export of raw materials without local processing. While the government’s renewed ban on raw shea nut exports signals an attempt to encourage domestic manufacturing, he maintains that sustainable economic growth will depend on deliberate industrial development and stronger value addition strategies.
Triumph Ojo
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