The Senate of the National Assembly has progressed the Raw Materials Research and Development Council (RMRDC) Bill, mandating the local processing of at least 30 per cent of raw materials before export, as it passed its second reading on Tuesday, December 10, 2024.
The Local Raw Materials Protection Bill, sponsored by Sen. Nwebonyi Peter of Ebonyi North Senatorial District, aims to bolster Nigeria’s industrial growth and development through local value addition. It proposes an amendment to the RMRDC Act of 2022 to prioritise domestic production and manufacturing.
During the plenary session, Senator Onyeka argued that the Bill’s enactment would transform Nigeria’s economy by enhancing local manufacturing, creating jobs, reducing import dependence and easing foreign exchange pressures. He emphasised that regulating the export of raw materials that could be processed locally would foster competitiveness and enable a thriving environment for local industries.
“Promoting local processing to a minimum of 30% will not only add value to our economy but also encourage innovation within local industries, significantly boosting domestic production,” Onyeka stated.
The Bill received widespread support in the Senate. However, deputy senate minority leader, Senator Lere Oyewumi raised concerns about its practicality. He noted that some raw material processors lack the capacity for local processing and strict enforcement might adversely affect manufacturers who depend on such imports, potentially leading to economic losses. He called for a balanced approach to implementation.
Earlier, the director-general of RMRDC, Prof. Nnanyelugo Ike-Muonso highlighted the Bill’s potential to strengthen Nigeria’s manufacturing sector, reduce import reliance and ensure sustainable economic growth. Speaking to journalists, Ike-Muonso explained that the legislation would mandate at least 30 per cent processing of raw materials locally before export, marking a transformative step in Nigeria’s raw materials and manufacturing policies.
He added that the Bill would generate more foreign exchange for the nation, protect its natural resources and enhance domestic processing capabilities. The reform aims to create a robust foundation for sustainable industrial development, benefiting local industries and the broader economy.
The RMRDC Bill represents a strategic effort to harness Nigeria’s vast raw material resources for economic growth and global competitiveness. As it moves closer to becoming law, stakeholders remain optimistic about its impact on driving innovation and strengthening the manufacturing sector.
