CPPE Chief warns against premature value-addition policy

Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), has cautioned the Federal Government against implementing premature compulsory value-addition policies for Nigeria’s primary product exports.

In a communique released to Newsdirect, Yusuf argued that such mandates could inadvertently stifle non-oil export growth and jeopardize the livelihoods of primary producers and processors.

Yusuf maintained that enforcing local processing requirements is ineffective without sufficient installed and operational industrial capacity.

He warned that restricting the export of raw materials before the domestic industry is ready would create a glut in the local market, leading to depressed prices that would hit farmers and rural communities the hardest.

“Protectionist policies may lead to elevated production costs, weak international demand, and declining foreign-exchange earnings,” Yusuf stated.

He stressed that a forced transition could undermine the very economic diversification it aims to achieve.

To navigate this transition successfully, the CPPE Chief recommended a strategy focused on expanding domestic processing capacity and improving utilization rates.

He urged the government to ensure that local processors are capable of absorbing domestic output without artificially distorting primary product prices.

Yusuf further highlighted the need for structural reforms, including providing reliable and affordable power, streamlining transport and logistics, and ensuring access to long-term, reasonably priced finance.

He also called for urgent investments in technology upgrades and workforce skill development to bolster global competitiveness.
Ultimately, Yusuf advocated for a gradual, predictable, and selective implementation of value-addition policies.

By anchoring these mandates to measurable increases in domestic capacity and ensuring market-aligned prices for producers, Nigeria can achieve sustainable industrialization while protecting its rural economy.