With China granting zero-tariff access to goods from 53 African countries, the Federal Government says Nigeria must process its raw materials at home if it wants the policy to drive jobs, investment and lasting economic growth…..
The Federal Government has urged Nigeria to seize China’s new zero-tariff access for African goods as an opportunity to move beyond exporting raw commodities and instead build a stronger economy around processed agricultural products, manufactured goods and value-added minerals.
The government made the call on Friday in Abuja at a seminar examining the implications of China’s zero-tariff policy for Africa’s economic transformation.
Minister of State for Agriculture and Food Security, Aliyu Abdullahi, said the new trade arrangement offered Nigeria an opportunity to reduce its dependence on crude oil exports and expand its presence in the Chinese market with higher-value products.
Rather than focusing simply on increasing the quantity of goods exported, Abdullahi said Nigeria needed to concentrate on the quality and level of processing of those goods.
“The question before us, therefore, is not, can Nigeria export more? The question should be, can Nigeria export better?” the minister said.
He identified processed cassava derivatives, premium rice, spices, hibiscus, cashew products, soybean derivatives, fruits and vegetables as some of the Nigerian products that could gain from improved access to the Chinese market.
But he warned that removing tariffs would not automatically translate into export success.
According to him, Nigeria must simultaneously improve agricultural productivity, expand processing capacity, strengthen logistics and storage infrastructure, improve quality assurance and traceability, and provide exporters with access to competitive financing.
He also stressed the importance of certification and compliance with sanitary and phytosanitary requirements, warning that Nigerian producers would not fully benefit from access to the Chinese market unless their products met international standards.
Abdullahi said the government was already working to expand Nigeria’s processing capacity through the Special Agro-Processing Zones Project.
The initiative is designed to encourage investment in facilities capable of transforming agricultural commodities into finished and semi-finished products for both domestic consumption and export.
He said Nigeria’s large resource base would only become a genuine competitive advantage if it was supported by technology, skilled workers, investment partnerships, research, modern logistics, digital agriculture and more efficient value chains.
The Chinese market, he added, should therefore be viewed not merely as a destination for Nigerian commodities but as an incentive to develop the domestic industries required to produce goods that can compete internationally.
Chinese Ambassador to Nigeria, Yu Dunhai, said the impact of the zero-tariff policy was already becoming visible in trade figures since its implementation on May 1, 2026.
According to Yu, China-Africa trade reached $207bn during the first six months of 2026, while Chinese imports from African countries between May and June reached $29bn, representing a 24 per cent increase compared with the same period a year earlier.
He said Africa’s exports to China had increased by about six per cent following the introduction of the policy, with Nigeria recording particularly strong growth.
Bilateral trade between Nigeria and China reached $18bn in the first half of the year, according to the ambassador, representing a 35 per cent year-on-year increase.
Chinese imports from Nigeria rose by 80 per cent to $2.3bn, with monthly growth exceeding 40 per cent in both May and June.
Yu said the increase had reduced trading costs for Nigerian exporters while creating additional opportunities for industrial development.
He gave several examples of the savings generated by the tariff policy.
According to him, exporters of 100 tonnes of sesame to China could save about $11,000 in costs, while Nigeria’s annual export of 7,000 tonnes of cattle bone granules had generated savings of nearly $450,000.
A single shipment of 23,000 tonnes of Nigerian liquefied propane, he added, saved approximately $300,000 in taxes on the first day of the policy.
Despite the growth in trade, the Chinese envoy said Nigeria would need to improve the quality and consistency of its exports if it wanted to turn the new market access into a lasting commercial advantage.
He called for greater investment in local processing and industrial differentiation, as well as stronger supply chains and closer links between trade and long-term investment.
Yu also said China was prepared to provide technical assistance to Nigerian producers seeking to improve standardisation and product quality.
He further proposed an Agreement on Economic Partnership for Shared Development between China and Nigeria, arguing that such an arrangement could convert the current tariff preferences into longer-term institutional guarantees.
The ambassador disclosed that 38 African countries had already signed framework agreements with China aimed at advancing early-harvest negotiations.
The Federal Government’s message extended beyond agriculture.
Representing Foreign Affairs Minister Bianca Odumegwu-Ojukwu, Permanent Secretary Dunoma Ahmed said Nigeria needed to fundamentally rethink its approach to natural resources.
He argued that preferential access to China would have limited economic impact if Nigeria continued to ship raw materials abroad and import finished products.
“Our natural resources must become the starting point, not the end point, of economic activity,” Ahmed said.
He said crude oil should increasingly support petrochemical and downstream industries, agricultural commodities should feed processing and manufacturing businesses, while Nigeria’s solid minerals should serve as the foundation for mineral processing and industrial production.
“In other words, we must transition from exporting resources to exporting value,” he said.
Ahmed also called on Chinese and other foreign investors to establish factories, processing facilities, technology centres and logistics networks in Nigeria instead of focusing primarily on the extraction and export of raw materials.
Infrastructure could determine who benefits
The Chairman of the House Committee on Nigeria-China Relations, Ja’afar Yakubu, said China’s tariff concession could help Nigeria diversify exports, expand manufacturing and participate more effectively in global value chains.
However, he identified infrastructure, logistics, access to finance, technical skills and regulatory standards as obstacles that could prevent Nigerian businesses from taking full advantage of the opportunity.
Yakubu also appealed to the Chinese Embassy to address visa difficulties affecting Nigerian traders travelling to China, particularly traders from Kano and other parts of northern Nigeria.
He argued that easier movement of legitimate traders could further strengthen commercial ties between both countries.
Representing the Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, a ministry director, Samson Ebimaro, similarly stressed the need to strengthen Nigeria’s productive capacity.
He said sectors including agriculture, agro-processing, solid minerals, manufacturing, leather and the creative industries could benefit significantly from greater access to the Chinese market.
But he warned that preferential tariffs would only produce meaningful results if Nigerian businesses could compete on production costs, quality and reliability.
The Director of the Centre for China Studies, Charles Onunaiju, described China’s zero-tariff policy as an important opening but cautioned African countries against treating it as a complete solution to their economic challenges.
He urged African governments to tackle domestic production constraints while using the African Continental Free Trade Area to develop regional value chains, harmonise standards and increase productive capacity.
The seminar, organised by the Centre for China Studies in collaboration with the Chinese Embassy in Nigeria, was convened to examine how African economies could maximise the opportunities created by China’s tariff concessions.
For Nigeria, the emerging consensus is clear: China’s decision to lower the cost of accessing its huge consumer market could provide a major export opportunity, but the real economic gains will depend on what Nigeria puts on ships.
If the country continues exporting largely unprocessed commodities, the tariff advantage may simply increase the volume of raw materials leaving Nigeria.
If, however, Nigerian businesses can process more of those resources at home, the new access to China could help generate manufacturing investment, create jobs, deepen industrial capacity and move the economy closer to the long-promised goal of value-added exports.
