Contrary to plans and expectations, Nigeria’s manufacturing sector is increasingly depending on imported raw materials for survival, a development which has undermined government’s imports substitution policy.
Financial Vanguard’s findings revealed that raw materials imports increased by 19.7 per cent, year-on-year (y/y) to N3.53 trillion in the first half of 2025 (H1’25) from N2.95 trillion in the corresponding period of last year (H1’24).
Data obtained from the National Bureau of Statistics, NBS, shows major imports to include sugar cane and associated products for the sugar refining and confectionary industries, additives for lubricating oils manufacturers, sheets for veneering, hides and skins for leeather products.
The imports were largely coming from Brazil, United States of America, United Kingdom, France, China, Germany and Tanzania.
There were also heavy raw materials imports in cement manufacturing, especially in such products as gypsum, while paint producers rely on importation of binders and resins.
Manufacturing sector stakeholders said the country’s rising dependence on imported raw materials was at variance with the import substitution goal of the government, posing a significant concern to the stakeholders, with pressure on the nation’s foreign exchange resources.
