CBN pivots to private-sector partnerships to de-risk raw materials investment

The Central Bank of Nigeria (CBN) is shifting toward deeper collaboration with the private sector to reduce investment risks in the country’s raw materials value chain, in a move aimed at unlocking industrial growth and improving investor confidence.

Usman Okpanachi, director of the Statistics Department at the Central Bank, said the apex bank will focus on strengthening data systems, improving policy coordination, and expanding stakeholder engagement as part of a broader effort to make the raw materials ecosystem more attractive to private capital.

Read also: CBN’s directive on the restriction of banking services to non-performing obligors: A Review

He said the Bank is repositioning itself away from direct intervention toward creating an enabling environment that supports investment in processing and manufacturing.

“We will be ready to partner, share our lessons and see how that can be put to use towards de-risking the raw material space so that we can begin to see more investment and participation by the private sector,” Okpanachi said at the 2026 Bullion Lecture organised by the Centre for Financial Journalism in Lagos.

The shift reflects growing recognition that limited data, weak coordination, and perceived risks have continued to discourage large-scale private investment in Nigeria’s raw materials sector, despite its potential to drive industrialisation.

Okpanachi said credible data remains central to ongoing reforms, noting that stronger statistical systems will improve transparency, support pricing, and enable better investment decisions across value chains.

“We’re making progress, and it is not only when we reach the final outcome that we judge success. We may not be there yet, but this could be a game changer,” he said.

The Central Bank’s approach builds on its previous experience in development finance and engagement across multiple value chains, but signals a more collaborative model designed to crowd in private sector participation rather than lead interventions directly.

The push to de-risk investment comes as policymakers intensify efforts to shift Nigeria away from exporting raw commodities toward domestic processing and manufacturing.

Nnanyelugo Ike-Muonso, director-general of the Raw Materials Research and Development Council, said Nigeria is advancing a framework that would mandate at least 30 percent processing of raw materials before export, with the policy already receiving presidential backing and moving toward legalisation.

He said the proposed legislation is intended to ensure more value is retained within the economy and to drive industrial expansion.

“We must start today to ensure that we do not export raw materials in their natural form,” Ike-Muonso said.

For decades, Nigeria has exported commodities such as crude oil, cocoa, and cashew in raw or minimally processed form, capturing only a small share of the total value while importing finished goods at significantly higher cost.

Read also: Tinubu seeks Senate confirmation of CBN deputy governor, others

Data presented at the event highlighted the scale of the gap. In the cashew value chain, raw exports generate about $1,050 per tonne, compared with as much as $7,800 for processed kernels. Across several commodities, Nigeria captures as little as 1 to 2 percent of total value, compared with over 90 percent in more industrialised economies.

Stakeholders said addressing those imbalances will require not just policy direction but also functional market infrastructure.

Gbolahan Bello, managing director of Calyx Securities, said the absence of bankable data and effective commodity trading systems remains a major constraint.

“Without bankable data and a functioning warehouse receipt system, even the best law will struggle,” he said, noting that such systems could allow commodities to become tradeable assets and reduce pressure on producers to sell at low prices.

Dele Kelvin Oye, chairman of the occasion, said global supply chain disruptions and geopolitical tensions are exposing the risks of Nigeria’s import dependence, reinforcing the need to strengthen domestic production.

“We must accelerate our transition from a consumption-driven economy to a production-driven one. By localising our supply chains, enhancing our domestic manufacturing capabilities, and pursuing value addition, we can insulate our economy from external shocks,” he said.

He added that inconsistent fiscal policies and continued imports of goods that can be produced locally are undermining domestic industries and discouraging investment.

While the policy direction is becoming clearer, market participants said the success of the Central Bank’s partnership-driven approach will depend on its ability to translate improved data, coordination, and policy signals into tangible reductions in investment risk across the raw materials sector.