Federal Government aims to boost GDP by ₦23 trillion through enhanced value‑added production

The Federal Government has set forth a bold economic directive to raise Nigeria’s Gross Domestic Product by ₦23 trillion—or approximately 12 percent—within the span of one year. Central to this initiative is a renewed push for value addition, a strategic shift intended to transform Nigeria from a country primarily exporting raw materials into one that produces, refines, and exports finished goods.

At the heart of the strategy lies the proposed “30 Percent Minimum Value Addition Policy,” which mandates that at least 30 percent of locally sourced raw materials—including agricultural produce, solid minerals, and petrochemicals—be processed in-country before reaching export markets. Proponents of the policy believe that successful implementation would inject an estimated ₦23 trillion into the national economy, driven by production, processing, and export of higher-value goods.

Complementing this policy is the expansion of the “Nigeria First” procurement framework, which prioritizes local content when awarding public contracts. Officials estimate that this procurement reform alone could generate an additional ₦3 trillion in domestic value, boost manufacturing activity, and create more than 500,000 jobs. It is also expected to reduce Nigeria’s dependence on imported finished goods by as much as 30 percent over the medium term.

Nigeria currently adds value to roughly 20–25 percent of its exported raw materials—a rate that lags behind regional peers. South Africa, Egypt, and Kenya have demonstrated that higher percentages of value addition can unlock industrial growth, export diversification, and stronger employment outcomes. Closing the gap to a 60 percent national average, as envisaged in the policy roadmap, would align Nigeria with global best practices and improve its competitiveness.

Operational levers to deliver the ₦23 trillion boost include incentives for agro-processing clusters, support for solid minerals beneficiation, and prioritization of light manufacturing. The National Raw Materials Research and Development Council (RMRDC) has drawn up a ten-year transformation roadmap to support the shift, targeting key subsectors such as cassava, cocoa, maize, rubber, glass, and lithium, among others. These efforts are designed to both diversify output and enable export-readiness under the African Continental Free Trade Area (AfCFTA).

Besides macroeconomic expansion, value addition is expected to generate millions of jobs, especially in rural and peri-urban areas. Processing hubs and industrial parks would require technicians, plant operators, logistics personnel, and support staff, presenting opportunities for both skilled and unskilled labor. Ancillary sectors—such as logistics, packaging, cold storage, and industrial services—stand to benefit from increased production volumes.

Despite the promise, several constraints must be addressed. A lack of dependable power supply, poor road and port infrastructure, cumbersome regulatory procedures, and restricted access to financing remain key impediments. Policymakers plan to confront these through the development of special economic zones, improved logistics corridors, and regulatory reforms that streamline licensing and reduce bureaucratic bottlenecks.

Sector leaders emphasize the need for technological upgrades and adherence to quality standards in factories and processing plants. Manufacturers have called for support in machinery modernization, capacity utilization, and export compliance certification—in order to produce goods that meet both domestic expectations and international standards.

Trade promotion and export empowerment are also critical. Financing facilities tailored to commodity-based exporters, partnerships with AfCFTA trade promotion initiatives, and regional value-chain collaboration aim to ensure that Nigeria’s value-added produce is competitive. Tariff reforms and non-tariff barrier reduction measures are also being explored to enhance market access.

However, experts warn that projections of a ₦23 trillion GDP boost depend heavily on synchronized implementation across multiple government agencies, consistent private-sector participation, and institutional resolve. Without enforceable legislation, transparency in procurement, and robust monitoring, the ambitions risk remaining nominal.

The proposed legislative underpinning—the 30 Percent Value Addition Bill—is crucial to translating strategy into action. Without statutory backing and enforcement guidelines, the policy may falter, as previous reform attempts have. Stakeholders say that clarity around enforcement mechanisms, penalties for non-compliance, and consistent funding will determine success.

If implemented with rigor, the value-addition drive stands to reduce Nigeria’s import bill, support foreign exchange retention, and enhance export earnings. By shifting the country’s economic narrative toward industrial production, the strategy holds the promise of inclusive growth, competitive export positioning, and reduced vulnerability to commodity price shocks.

In summary, the Federal Government’s ambition to lift GDP by ₦23 trillion through enhanced value addition reflects a significant recalibration of Nigeria’s economic trajectory. The plan calls for the nation to move beyond being a raw materials supplier and embrace roles as processor, manufacturer, and exporter. Anchored in policy reform, infrastructure investment, and targeted incentives, this ambition, if realized, could mark a pivotal inflection point in Nigeria’s efforts to build a diversified, resilient, and competitive economy.