Low value addition hinders Nigeria’s non-oil export push

‎Nigeria’s efforts to diversify its economy and boost non-oil exports are being undermined by low value addition in its exportable products, cutting gains on global trade opportunities amid rising export volumes.

Experts at the Lagos Chamber of Commerce and Industry (LCCI) Exporters Development Programme held recently in Lagos emphasized that the country’s non-oil export potential remains under-optimised due to gaps in processing, quality standards, and access to international markets.

‎Nonye Enyi, executive director and CEO, Nigerian Export Promotion Council (NEPC), said Nigeria’s export structure remains heavily dominated by crude oil and gas, which account for 80 percent of total export earnings, exposing the economy to oil price volatility, foreign exchange instability and fiscal uncertainty.

Enyi, represented by Benedict Itegbe, South-West regional coordinator of the council, noted that the country’s non-oil exports have continued to expand, hitting $6.1 billion in 2025, an 11 percent increase from $5.5 billion in 2024, with export volumes rising to 8.02 million metric tonnes across 120 countries and 281 product lines.
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‎She stressed that despite this growth, Nigeria continues to export many products in their raw form, including cashew and cocoa, leaving much of the value in the hands of processing countries.

‎She explained that while a kilogram of raw cassava earns only a few cents, processed cassava starch can generate three to five times more value, underscoring the need to invest in processing, packaging, branding, and quality assurance to reposition the country as a producer of finished and semi-finished goods for global markets.

‎She further noted that many small and medium-scale enterprises (SMEs), which are central to export diversification, face challenges meeting the volume and quality consistency required by international buyers.

‎She said initiatives such as export clusters and agro-processing centres are being developed to improve scale, standardisation, and reduce the cost of value addition, while urging businesses to invest in export readiness and develop clear plans to take advantage of global market opportunities.

‎Leye Kupoluyi, president, Lagos Chamber of Commerce and Industry (LCCI), said that Nigeria’s export potential is being squandered by chronic shortcomings in value addition, quality standards, and market access, which have entrenched the country’s role as a raw commodity supplier rather than a competitive, value-driven export player.

‎He noted that global disruptions, including geopolitical conflicts and supply chain shifts, have altered trade flows and foreign exchange dynamics, making it imperative for Nigeria to take advantage of emerging opportunities.

‎He added that exporting raw agricultural produce limits Nigeria’s participation in global value chains, noting that value addition enhances competitiveness and foreign exchange earnings.

‎“Exporting raw cocoa, for instance, yields only a fraction of the value compared to processed chocolate products,” he said.

He added that Nigeria’s pathway to economic resilience lies in transitioning from an oil-dependent economy to a diversified, export-driven one supported by improved standards, logistics and market intelligence.

‎Bamidele Ayemibo, managing director, 3T Impex Consulting Limited, said many businesses fail in export markets due to inadequate preparation, noting that export readiness remains a major challenge for exporters.

‎He explained that while some businesses are able to enter international markets, many are unable to sustain operations due to delays, poor planning, quality issues and other inefficiencies, often resulting in financial losses and exit from the market.

‎Ayemibo noted that exporters often struggle with pricing, logistics and documentation, stressing that many transactions are based on assumptions rather than proper cost analysis, while high transportation costs and documentation discrepancies continue to affect competitiveness and payment timelines.

‎“Nigeria needs to take exports more seriously. We’re not taking it seriously,” he said, adding that strengthening support systems and increasing export capacity are critical to improving economic outcomes.