Nigeria imported raw material goods worth N1.72tn from Asia alone in the first half of 2025, representing 48.84 per cent of the total raw material imports during the period.
The figure is also 138.8 per cent higher than the imports from the next major economic region, America, which stood at N722.29bn, according to data from the National Bureau of Statistics.
But manufacturers and economists who spoke with The PUNCH in separate telephone interviews cautioned that this dependency highlights Nigeria’s limited ability to extract and process raw materials domestically.
They explained that this weakness has resulted in industries being heavily reliant on imported inputs. If the imbalance is not addressed, it may continue to exacerbate Nigeria’s trade deficit and diminish industrial competitiveness.
Analysis of the NBS data further showed that Nigeria imported a total of N3.53tn worth of raw materials in the first half of the year. This includes N1.81tn in the first quarter and N1.72tn in the second quarter. Analysts highlight these figures as evidence of Nigeria’s significant reliance on external markets, particularly in Asia, for industrial inputs and intermediate goods.
The data indicated that Asia accounted for 48.84 per cent of Nigeria’s total raw material imports during this period, far exceeding imports from all other regions combined. Specifically, imports from Europe totalled N683.27bn, from Africa N395.08bn, and from Oceania a mere N5.02bn.
Among the most notable imports, cane sugar intended for refining topped the list at N158.96bn, primarily sourced from Brazil. Other key imports included additives for lubricating oils valued at N33.63 bn from the United States, N26.60bn from the United Kingdom, and N16.53bn from France. Additionally, sheets for veneering, primarily imported from China, were valued at N55.86bn and marked one of the significant items from Asia.
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The Director of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said Asia’s dominance, especially China’s, was expected given global trade patterns.
He described China as “Nigeria’s biggest import partner”, adding that the Asian powerhouse accounts for a major share of Nigeria’s raw material imports.
Yusuf said, “Asia is Nigeria’s leading trade partner. China is Nigeria’s biggest import partner. The China factor alone is enough to explain this. A lot of imports come from China and India, especially chemicals and plastics used by manufacturers.”
He explained that Nigerian industries relied heavily on imported inputs such as chemicals, plastic polymers, and polypropylene, which are cheaper to source from Asian markets. “Our manufacturers import large volumes of chemical and allied raw materials,” the CPPE chief said. “Most of them come from Asia because the region offers a clear price advantage over Europe.”
Yusuf acknowledged that such dependency poses a “concentration risk” but stressed that businesses often prioritise cost efficiency over diversification. “It’s not ideal to rely too much on one source,” he said. “But these are business decisions. Firms will always buy from where they get the best deal.”
He noted that China’s efficiency and competitive pricing have made it the preferred supplier for Nigerian industries, adding, “As long as China remains reliable, businesses will stick with them. The best approach is to manage concentration risk and build alternative supply channels as backup.”
A former Vice President of the Manufacturers Association of Nigeria, John Aluya, said the trend of Asian dominance is not unique to Nigeria, as China has become the global hub for raw material production and supply.
Aluya explained, “China today is the manufacturing hub of the world. Every region relies on China for most basic raw materials. Once you say Asia, you’re essentially talking about China, because China alone accounts for over 90 per cent of Asia’s raw material output.”
He explained that the high import share from Asia was inevitable, as even developed nations depend on China’s production capacity. “Even America imports more from China than from anywhere else,” he said.
Aluya linked Nigeria’s reliance to its weak extraction and processing infrastructure, stressing, “We have raw materials, but our extraction and processing systems are poor. Until we fix that, we will continue importing from China.”
He identified two main gaps in Nigeria’s industrial chain: extraction and processing. The former MAN Vice President said, “Our extraction process is still crude. We lack modern machinery that can extract raw materials quickly and efficiently. After extraction, we also lack the facilities to process them into usable industrial inputs.”
Aluya noted that inadequate technology and an unreliable energy supply have made local processing uncompetitive. He stressed, “Energy is a big constraint. You cannot process raw materials without a stable power supply. When machines stop and start, product quality drops. That inconsistency affects output and value.”
He noted that Nigeria’s export of unprocessed commodities such as gold, columbite, and diamonds denies it the economic benefits of value addition. “We extract and ship them raw because we lack the technology and capacity to process locally. That must change if we are serious about industrial growth,” he advised.
A professor of mechatronics and agricultural machinery at the University of Nigeria, Nsukka, Ozoemena Ani, said Nigeria’s import dependency reflects the failure of industrialisation over the decades.
Ani said, “It’s a well-known fact that Nigeria imports almost everything. That’s because our industrial production is very low. This affects Gross Domestic Product, foreign exchange, and even the value of the naira.”
He said the scale of importation weakens Nigeria’s trade position and limits growth potential, noting, “Importation devalues us and cuts down on foreign exchange and GDP. It also erodes confidence in our economy.”
Ani maintained that the government must demonstrate sincere political will to revive dormant industrial projects and support domestic manufacturing to reverse this trend. The professor said, “If the Ajaokuta Steel Rolling Company had been working, we would have been producing steel raw materials locally. Instead, we’re still importing what we can produce.”
He attributed this failure to inconsistent policies and lack of continuity in industrial development plans, noting, “If the will of the government is sincere and correct, every other thing will fall in place. We have the people and the knowledge; what’s missing is leadership and commitment.”
Ani asserted that Nigeria could learn from China’s early industrial strategy, which prioritised self-reliance and protectionism. He explained, “When China started, the government stopped bringing in anything from outside. They locked their borders until they could produce what they needed. That’s how they grew.”
The mechatronics professor urged the Nigerian government to adopt similar policies that protect local producers, particularly in agriculture and manufacturing, adding, “If you protect local farmers and producers, they’ll thrive. But when imported goods are cheaper, local producers lose out.”
He cited the case of rice farmers whose products struggle to compete with imported rice, stating, “If policies protect local rice producers, they’ll break even. The problem is that imported alternatives are cheaper, and nobody wants to buy what costs more.”
Ani said industries like Innoson Vehicle Manufacturing could also benefit from targeted procurement policies. “If the government buys its vehicles from Innoson, it will help that company grow,” he said. “The same should apply to refineries; boost Dangote Refinery and the Nigerian National Petroleum Company Limited plants. Policy protection is critical.”
These stakeholders agreed that Nigeria’s dependence on Asia for nearly half of its raw material imports reflects deeper structural weaknesses. The consensus is that the country needs a coordinated national strategy to strengthen local extraction, processing, and manufacturing capacity.
CPPE director Yusuf urged the government to ensure private businesses can diversify the country’s raw material goods import destination to avoid being held at ransom in the future.
