Nigeria pushes for value addition to curb USD 1.1B cosmetics bill

NIGERIA – Nigeria spends over USD 1.1 billion annually on cosmetics imports, prompting a strong government push to boost domestic manufacturing and reduce reliance on imports. 

Nigeria’s cosmetics sector faces a massive USD 1.1 billion import bill, covering beauty products, skincare, perfumes, essential oils, and toiletries, sourced mainly from countries like India, the US, and China. 

This dependence drains foreign exchange reserves, while local manufacturers struggle to meet demand despite a burgeoning domestic market valued at around USD 3.4 billion. 

Policymakers view this as an opportunity to capture economic value by processing homegrown inputs rather than exporting raw inputs like shea butter.

Authorities are promoting a 30% value addition requirement for raw materials in cosmetics production to curb imports and foster industrialization. 

The Raw Materials Research and Development Council (RMRDC) spearheads a decade-long plan to achieve 95% local processing by 2034, including restrictions on raw material exports. 

The Raw Materials Research and Development Council (RMRDC) is spearheading a broader national value‑addition agenda, anchored on a proposed 30% local processing requirement for selected raw materials, including inputs relevant to cosmetics such as clays, plant oils, and botanical extracts. 

A 10‑year roadmap aims to raise the domestic share of value added to about 95% for key sectors by 2034, with cosmetics and wider consumer‑goods sectors explicitly flagged as priority areas.

The Nigerian beauty industry boasts rapid expansion, with projections of 17.7% annual growth through 2027, outpacing other African markets. 

Local gaps in climate-adapted formulations create avenues for R&D collaborations, innovation contests, and scaled manufacturing. 

By prioritizing domestic output, the strategy promises job creation, reduced capital outflows, and competitive products aligned with consumer preferences for hygiene and personalization.

Meanwhile, early this year,  Nigeria approved its first national policy on cosmetics safety and health, developed with the World Health Organization (WHO) and implemented through the National Agency for Food and Drug Administration and Control (NAFDAC).

The policy aims to strengthen regulation of the manufacture, import, sale, and disposal of cosmetics, and explicitly links better oversight to strengthening the domestic value chain and reducing exposure to harmful chemicals.

NAFDAC has already recorded close to 9,000 cosmetic products that meet national regulatory requirements since 2022, signalling heavier scrutiny of imports and a push to formalise the market. 

At the same time, the agency’s guidelines stipulate that no cosmetic can be imported, advertised, or sold in Nigeria without registration, a move that indirectly supports local manufacturers by raising compliance barriers for substandard or purely “off‑the‑shelf” foreign products.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.