The Raw Materials Research and Development Council (RMRDC) of Nigeria is collaborating with Nigerian lawmakers to pass legislation that will halt the importation of raw materials that can be sourced locally. The council is advancing this initiative through a bill currently before the National Assembly, which has already passed its first reading.
At a one-day interactive session with the Manufacturers Association of Nigeria (MAN) in Lagos, RMRDC’s Director-General and CEO, Prof. Nnanyelugo Ike-Muonso, revealed that the bill aims to boost Nigeria’s economy by ensuring that raw materials needed for industrial production are sourced domestically.
Proposed Legislation to Strengthen Nigeria’s Economy
Prof. Ike-Muonso explained that the bill, once passed, will help conserve Nigeria’s foreign exchange reserves, safeguard natural resources, and stimulate local processing capabilities. He emphasized that the bill includes a provision requiring at least 30% value addition to all raw materials before export. This will not only support local industries but also help create jobs and promote industrial growth.
“The bill has already gone through its first reading, and we are optimistic that it will pass through the next reading soon. This policy is part of our broader efforts to position Nigeria as a leader in industrial innovation and self-reliance,” Ike-Muonso said.
Key Focus: Value Addition to Raw Materials
The 30% value addition requirement is a significant component of the bill. Ike-Muonso explained that this target was determined through data gathered from the ten sectoral groups of MAN. The comprehensive survey, conducted by the Multi-disciplinary Task Force (MTF), identified areas where Nigerian industries could enhance their value-added processing capabilities.
“The MTF’s findings provide a roadmap for upgrading industrial capabilities across various sectors. The data gathered will guide us in helping manufacturers improve their processing technologies and build capacity to meet the 30% value addition requirement,” Ike-Muonso stated.
Supporting Domestic Manufacturing and Export Growth
The new policy aims to reduce Nigeria’s dependence on imported raw materials, which would in turn foster greater self-sufficiency in the manufacturing sector. By focusing on local sourcing and value addition, the initiative seeks to increase Nigeria’s competitiveness in the global market, attract investment, and create sustainable economic growth.
Additionally, Ike-Muonso highlighted that the council’s approach is built on data-driven insights, ensuring that the policy’s implementation will be practical and achievable. With sector-specific support mechanisms in place, RMRDC plans to guide manufacturers through the transition to meeting the value addition target.
Strengthening Collaboration Between RMRDC and MAN
Segun Ajayi-Kadir, the Director-General of MAN, noted that the session marked an important step toward fostering stronger partnerships and collaboration between RMRDC and MAN. He emphasized the significance of developing strategic initiatives that promote the use of locally sourced raw materials and improve the marketability of Nigerian-made products.
“This session is a unique opportunity to work together on an international project aimed at improving the patronage of made-in-Nigeria goods. It’s the first time RMRDC has made the development of its strategic plan so inclusive, and it underscores the potential of our collaboration to enhance productivity and raw material development in Nigeria,” Ajayi-Kadir said.
Looking Ahead: A Sustainable Future for Nigerian Manufacturing
RMRDC’s partnership with Nigerian lawmakers and manufacturers is poised to significantly impact Nigeria’s industrial landscape. By implementing policies that focus on local sourcing and value addition, the government aims to strengthen the country’s manufacturing sector, create jobs, and boost Nigeria’s global economic standing.
This initiative reflects the government’s commitment to industrialization, sustainable economic growth, and self-reliance for Nigeria’s future.
—Punch
