The Raw Materials Research and Development Council of Nigeria is collaborating with lawmakers to pass legislation that would restrict the importation of raw materials that can be sourced locally.
The bill, which has already passed its first reading in the National Assembly, aims to encourage local production and reduce reliance on imports.
This emwas disclosed by the Director-General and CEO of RMRDC, Prof. Nnanyelugo Ike-Muonso, during a one-day interactive session with the Manufacturers Association of Nigeria in Lagos on Thursday.
Ike-Muonso stated that once the bill is passed, it will help increase Nigeria’s foreign exchange reserves by reducing the need to import raw materials. It will also safeguard the country’s natural resources and promote the growth of domestic processing industries, ultimately boosting local manufacturing and economic development.
He said, “Today I am pleased to announce several groundbreaking initiatives that will substantially complement and enhance the effectiveness of the MTF, positioning Nigeria as a leader in industrial innovation and self-reliance.
“First, we are making significant strides in policy reform by sponsoring a transformative bill in the National Assembly. This legislation will mandate a minimum of 30 per cent value addition to all raw materials before export. This bold move will protect our natural resources and catalyse domestic processing capabilities, creating jobs and fostering industrial growth. This bill has already gone through the first reading, and we expect it to pass through the next reading, hopefully by next week.”
The RMRDC boss explained that the council arrived at the 30 per cent value addition requirement on raw materials before export following survey and data collected from the ten sectoral groups of MAN.
“The Multi-disciplinary Task Force’s comprehensive survey and data collection across the 10 sectoral groups of MAN provides the crucial foundation for implementing the 30 per cent value addition requirement on raw materials before export. The MTF identifies areas requiring value addition capability enhancement and provides actionable insights for manufacturers to upgrade their processing capabilities through its detailed mapping of industrial capabilities, processing facilities, and technological gaps.
“The task force’s findings help pinpoint which sectors require targeted support, technological intervention, or capacity building to achieve the 30% threshold. Furthermore, by documenting current value-addition practices and potential across different industries, the MTF enables RMRDC to develop sector-specific strategies and support mechanisms to help manufacturers meet this new export requirement while enhancing their competitiveness in global global markets. This systematic approach ensures that the 30 per cent value addition policy is not just an aspiration but an achievable target backed by data-driven insights and practical implementation strategies,” Ike-Muonso stated.
Earlier during the session, the Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, described the meeting as an opportunity to explore “partnerships to implement an international project aimed at improving patronage of made-in-Nigeria products.
“The second stems from the fact that it is a first of its kind, that the leadership of RMRDC is making the process of developing the strategic plan and initiatives of the Council this inclusive. The third is that it is another opportunity to deepen the existing relationship/collaboration between MAN and RMRDC, as it holds enormous potential for upscaling productivity, raw materials development, and utilisation in Nigeria.”
