A leading Nigerian economic think tank has cautioned federal authorities against implementing export restrictions on raw materials, arguing such measures would distort markets and harm the economy without first resolving deep-seated structural deficits.
The Centre for the Promotion of Private Enterprise (CPPE) urged a realistic, phased approach to policies linking primary product exports to local value addition. In a policy brief, CPPE Chief Executive Dr. Muda Yusuf stated that while value addition is a valid long-term goal, pursuing it coercively in the current environment is counterproductive.
“Value addition is important, but it must be pursued with realism and proper sequencing. Exporting primary products should not be discouraged in an environment where the cost of processing is uncompetitive,” Dr. Yusuf said. He highlighted that Nigeria’s manufacturing sector grapples with high production costs stemming from unreliable power supply, inadequate infrastructure, logistical bottlenecks, and multiple taxation. These factors, he noted, make large-scale domestic processing financially unviable in the short term.
Dr. Yusuf pointed to the historical development path of now-industrialized nations, which first leveraged primary exports to generate capital, build skills, and develop infrastructure before transitioning to value-added production. He warned that export bans, levies, or restrictive policies on raw materials would reduce earnings for farmers and producers, incentivize smuggling, and diminish critical foreign exchange inflows.
Instead of coercion, the CPPE advocated for incentive-based strategies. Dr. Yusuf urged the government to prioritise improving the fundamental business environment through reliable energy, upgraded transport networks, easier access to finance, and streamlined regulations. He stressed that primary product exports currently provide essential jobs, income, and foreign exchange.
“Curtailing them prematurely without fixing the fundamentals could be counterproductive,” he added.
The think tank concluded that Nigeria’s export strategy must balance immediate economic realities with long-term industrialisation objectives. Dr. Yusuf emphasized that proper sequencing—addressing infrastructure and cost competitiveness first—is essential for achieving sustainable growth and economic diversification. The statement positions export policy as a critical component of Nigeria’s broader economic recovery and industrialisation agenda.
