The Nigerian Senate has proposed legislation mandating that all raw materials sourced within the country undergo a minimum of 30% local processing before exportation, as part of strategic efforts to drive industrialization, create jobs, and enhance economic growth.
The proposal was the focal point of the Public Hearing on the Raw Materials Research and Development Council Act, 2022 (Amendment) Bill, 2024, declared open by the President of the Senate, Senator Godswill Akpabio, who was represented by the Senate Deputy Chief Whip, Senator Peter Onyekachi Nwaebonyi.
Delivering the Senate President’s message, Senator Nwaebonyi described the bill as a catalyst for Nigeria’s economic transformation, emphasized that exporting raw materials in their crude form had long deprived the nation of economic benefits while creating wealth and jobs for foreign industries.
“The proposed amendment seeks to ensure that no raw material leaves our shores without undergoing at least 30% local processing. This will not only add value to our resources but also generate employment and stimulate industrial growth across critical sectors,” he stated.
He further highlighted that the legislation aligned with the Senate’s broader vision of promoting local content development, self-reliance, and reducing dependency on imported finished goods.
Senator Akpabio urged stakeholders, industry players, and policymakers to actively engage in the deliberations, noting that their contributions would help shape the bill to address the realities of the Nigerian economy.
“This public hearing represents a pivotal step in our collective journey towards economic sustainability. The decisions made here today will lay the groundwork for a future where Nigeria maximizes its natural wealth for the benefit of its people,” he added.
The public hearing attracted diverse participants, including representatives of government agencies, private sector players, and civil society organizations, underscoring the widespread interest in the bill’s potential to revolutionize Nigeria’s industrial landscape.
In an interview after the session, the Director-General of the Raw Materials Research and Development Council (RMRDC), Prof. Nnanyelugo Ike-Muonso, emphasized the importance of adding value to Nigeria’s raw materials before export, describing the move as a crucial step toward economic growth.
Speaking to journalists after the hearing, Prof. Ike-Muonso expressed excitement over the bill, noted that 99% of stakeholders present gave full support for the amendment.
“This policy is long overdue. We cannot continue to export raw materials in their virgin form without value addition. It is time to stop enriching foreign countries while impoverishing ourselves,” he said.
The DG explained that the council had pegged the minimum value addition at 30% for now, with a long-term projection of reaching 50-70% within the next decade. He acknowledged the technological challenges in managing the transition but assured that the council would collaborate with relevant ministries and agencies to streamline operations.
“This initiative is not just for RMRDC but for all ministries, agencies, and citizens of Nigeria. It marks the beginning of a new dawn,” he concluded.
The Secretary General of the Academic Staff Union of Research Institutions (ASURI), Prof. Theophilus Ndubusi, described the proposed policy as a turning point for Nigeria’s economic development.
Speaking to journalists as a stakeholder, Prof. Ndubusi said the policy would address the long-standing practice of exporting raw materials without local processing, which deprives the country of foreign exchange earnings and creates jobs in foreign countries.
“When you export raw materials without processing them, you’re paying for the labor of another country. They refine the materials, employ their workers, and send the finished products back to us at a higher cost,” he explained.
Prof. Ndubusi lauded the leadership of Prof. Nnanyelugo Ike-Muonso for spearheading the advocacy for value addition and commended the National Assembly for its commitment to the bill.
He emphasized that the implementation of the 30% value addition policy would compel foreign investors to establish processing plants in Nigeria, creating jobs and boosting industrial capacity.
“This initiative will not only create jobs but will also tackle the root causes of insecurity, which are largely tied to unemployment. If people are engaged and earning a decent living, crimes like banditry and other social vices will drastically reduce,” he added.
Prof. Ndubusi called on stakeholders to support the bill and urged the government to ensure its speedy passage and implementation, describing it as a catalyst for Nigeria’s industrial revolution.
“This is a landmark policy that could change the trajectory of our economy. We must seize this opportunity to rewrite the narrative of our nation’s development,” he concluded.
The proposed legislation mark a significant step in Nigeria’s journey towards economic self-reliance, job creation, and industrial transformation.
