Petroleum, cement, coal top most utilised local minerals -RMRDC DG

The Raw Materials Research and Development Council (RMRDC) has said that petroleum oil, at a utilisation rate of 54.6 per cent, is the most utilised local mineral resource in Nigeria, while cement, bituminous coal, and tin ores follow closely in terms of local utilisation. The Director General of the council, Prof. Nnanyelugo Ike-Muonso, said this […]

The Raw Materials Research and Development Council (RMRDC) has said that petroleum oil, at a utilisation rate of 54.6 per cent, is the most utilised local mineral resource in Nigeria, while cement, bituminous coal, and tin ores follow closely in terms of local utilisation.

The Director General of the council, Prof. Nnanyelugo Ike-Muonso, said this on Friday in Abuja during the launch of the Quarterly Statistical Bulletin Series of the council.

He said that the bulletin is aimed at providing data-driven insights to promote local sourcing, domestic manufacturing, and industrial development.

He said that the agricultural sector also demonstrates high local utilisation, with cane sugar leading at 56.1 per cent.

Prof. Ike-Muonso said the Quarterly Statistical Bulletin offers detailed insights into Nigeria’s trade performance for three quarters of the year, 2024, focusing on imports, exports, agricultural raw materials, and opportunities for import substitution.

He added that total imports in the first quarter of 2024 amounted to N2.3 trillion, with key imports, including petroleum jelly, sulfur, kaolin, and oils with energy and construction sectors as the most dependent on foreign imports, adding that energy materials alone accounted for over N1.5trn.

“Nigeria’s raw materials export trade totaled N3.9 trillion for the same period, with notable exports including petroleum oils, natural gas, and minerals such as quartz, titanium ores, and bituminous coal. These strong export figures highlight Nigeria’s significant role in global mineral and energy resource supply chains.

“Agricultural raw materials continue to play a vital role in Nigeria’s trade. In Q1 2024, agricultural exports reached N226 billion, led by cocoa beans, cashew nuts, and sesame seeds. However, agricultural imports amounted to N1.1 trillion, driven by the need for food supplements, milk preparations, and palm oil,” he stated.

The report noted that this imbalance indicates a need for enhanced local processing capabilities to meet demand and capitalise on Nigeria’s agricultural potential.

The report however identified opportunities for import substitution and highlights sectors where Nigeria could benefit from increased local production.

He said, “Nigeria’s local raw material utilisation rates vary. Petroleum oil is the most utilised mineral with a rate of 54.6%, followed by cement, bituminous coal, and tin ores. The agricultural sector also shows high local utilization, with cane sugar being the most utilized at 56.1 percent.

The reports said, “The report emphasises the potential benefits of increasing local processing, which could reduce reliance on imports and create significant economic growth opportunities. On the economic impact of value addition for the period under review.

“Currently, Nigeria’s value addition rate stands at 25 per cent, with projections indicating that increasing this rate could lead to a 15.6 per cent increase in employment, a 2.2 per cent rise in industrial output, and a 21.25 per cent improvement in the exchange rate against the dollar.”