Imports of raw materials surged by 25% to N3 trillion in 2023, as per data from the National Bureau of Statistics (NBS), attributed to the weakening value of the naira.
The imported raw materials during this period included cane sugar, lubricating oils, milk preparations, odoriferous substances, and veneering sheets, among others.
In contrast, Nigeria’s exports of raw materials amounted to only N1.8 trillion between 2022 and 2023, resulting in a trade deficit of N3.6 trillion.
Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, attributed the surge in raw material imports to the depreciation of the naira, emphasizing the impact of currency devaluation on import costs.
Manufacturers have long criticized the over-reliance on imported raw materials, citing its detrimental effect on the domestic manufacturing sector’s competitiveness and resilience.
Former MAN President, Mansur Ahmed, highlighted the urgent need for measures like backward integration and import substitution to mitigate the adverse effects of excessive import reliance.
