NIPSS Urges Manufacturers to Deepen Local Sourcing as Raw Material Imports Hit N3.4trn Yearly

The National Institute for Policy and Strategic Studies (NIPSS) has urged the Manufacturers Association of Nigeria (MAN) to analyse the sources of raw materials used by manufacturers and identify production inputs that could be sourced or produced locally.

NIPSS Director-General Professor Ayo Omotayo made the call in Lagos at the opening of MAN’s 54th Annual General Meeting and Made-in-Nigeria Exhibition. He said Nigeria’s costly dependence on imported inputs must be reduced.

N3.4trn annual import bill

Omotayo called for a special policy on raw materials. “We should have a special policy on raw materials so that we do not spend N3.4 trillion importing raw materials yearly,” he said.

He challenged MAN to examine the materials currently imported for manufacturing and determine how many could be sourced or manufactured within Nigeria. Greater local sourcing, he said, would help reduce production costs, strengthen domestic value chains and retain more economic value within the country.

Universities and industry link

Omotayo also called for stronger collaboration between universities and the real sector. He said universities could make significant contributions to industrial development through research, innovation and skills development.

He said NIPSS would continue to support the manufacturing sector, adding that manufacturing remained the soul of development and a critical driver of economic growth.

What it means for manufacturers

For manufacturers, a deliberate raw materials policy could lower input costs tied to imports and foreign exchange. It could also deepen domestic supply chains if implemented. The N3.4 trillion yearly import bill shows the scale of the opportunity for local input production, but the shift depends on policy, capacity and university-industry collaboration.