Chika Mbonu Expresses Disappointment Over Nigeria's Continued Raw Material Exports

Business analyst Chika Mbonu has stated that Nigeria's ongoing practice of exporting raw commodities without any form of value addition is a "big shame." He believes that many years after gaining independence, the nation should have advanced beyond merely shipping unprocessed goods.

Mbonu asserts that genuine economic progress is achieved by processing raw materials domestically into high-value finished products. Such a strategy, he explained, would significantly boost foreign exchange earnings, generate more employment opportunities, and strengthen local industries.

In a recent interview with ARISE News on Thursday, Mbonu openly shared his views when commenting on the Federal Government's decision to prolong the ban on the export of raw shea nuts.

Reacting to the fiscal policy aimed at halting shea nut exports for an additional year, he remarked, "That is still a big shame to a country that, you know, after multiple years of independence, was still exporting raw material commodities out of this country."

He strongly advocated for Nigeria to proactively establish industries capable of transforming locally sourced raw materials into finished goods.

"You know, it’s still a big shame, you know, that we’re not going to be able to develop industries, so I encourage investors to invest in industries in Nigeria that can process this locally sourced raw materials into high-value finished goods, you know, so that you can increase the value addition."

Mbonu elaborated on the economic advantages of value addition, using shea products as an illustration. He stated, "Now, the value addition, when it’s done, will get more effects, at least 10 to 20 times more foreign exchange for a country that’s just exporting their raw materials."

He further highlighted that the advantages extend beyond financial gains. "Of course, you know the other advantages of this, employment creation for our country, higher tax."

Explaining the government's policy objective, he clarified, "Basically, so this is what the government is saying, we want to ban this exportation, so to reduce the incentive for people to just carry raw materials and export, and so that people can invest locally in the manufacturing plants, to move from shea nuts to shea butter, that has a lot more value added."

Mbonu's observations reflect a persistent structural issue within Nigeria's economy: the continuous export of raw materials without local processing. While the government's recent extension of the ban on raw shea nut exports indicates an effort to stimulate domestic manufacturing, he maintains that sustainable economic advancement hinges on deliberate industrial development and more robust value addition strategies.