In an unprecedented development aimed at fulfilling the Raw Materials Research and Development Council (RMRDC) mandate, the National Assembly, through the Senate, has passed the first reading of a draft legislative Bill seeking to promote Nigeria’s raw materials processing and protect local production.
In a statement signed by the Director of Corporate Affairs of RMRDC, Mr. Chuks Ngaha, the Bill, sponsored by Senator Nwebonyi Onyeka Peter from the Ebonyi North Senatorial District and presented for its first reading, highlights the importance of its passage as essential for Nigeria’s industrial growth and development.
The draft Bill aims to strengthen Nigeria’s local manufacturing sector, reduce dependency on imports, and ensure sustainable economic development by promoting local processing and adding value to the nation’s raw material resources.
It also seeks to promote domestic processing by mandating that no raw materials be exported from Nigeria without undergoing at least 30% processing, thereby fostering value addition within the country.
Regarding the protection of local industries, the Bill aims to prohibit the importation of raw materials available for local production, safeguard local manufacturers from unfair competition, and encourage the growth of the domestic industry: “Enhance economic growth by stimulating development, creating jobs in local processing industries, increasing capacities of local firms, and reducing reliance on imported raw materials.”
The Bill will encourage sustainable practices through resource management and environmental protection by utilising locally sourced materials, thus reducing the carbon footprint associated with raw material transport.
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Once enacted, the Bill will support Nigeria’s technological advancement by facilitating the adoption of advanced processing technologies in local industries to improve efficiency and product quality.
‘‘The objective is to ensure that no raw materials are exported from Nigeria without undergoing a minimum of 30% processing, and to prohibit the importation of raw materials available for local production.”
It stated that RMRDC will establish guidelines outlining the acceptable forms of processing, including standards for quality, safety, and environmental impact, and will set up certification processes for all raw materials intended for export.
The Bill emphasised that no raw materials shall be exported from Nigeria without certification by the Council, confirming that the materials have undergone the required processing.
On import prohibition, the Bill indicates that no raw materials capable of being processed or produced locally shall be imported, and the Federal Ministry of Trade and Investment, in consultation with RMRDC, will compile and maintain a list of locally available raw materials for local production, subject to periodic review.
The Bill further states that RMRDC will be responsible for monitoring compliance with the Act, with violators facing penalties including fines and revocation of licences.
According to the draft Bill, the federal government, through RMRDC, will provide financial and technical support to processing industries to enhance their capacity, and in partnership with the Ministry of Finance, offer tax incentives to companies that invest in local processing facilities.
The Raw Materials Processing and Local Production Protection Act shall come into force six months after its passage.
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