The Nigerian Senate has passed the first reading on a draft legislative Bill seeking for Nigeria’s raw materials processing and local production protection.
A statement signed by the Director, Corporate Affairs of RMRDC, Mr. Chuks Ngaha said, the Bill was sponsored by Senator Nwebonyi Onyeka Peter, from Ebonyi North Senatorial District and presented to lawmakers for its first reading.
It underscores the imperative of its passage as the pathway to Nigeria’s industrial growth and development, the statement said.
The draft legislative Bill seeks to fortify Nigeria’s local manufacturing sector, reduce dependency on imports and ensure sustainable economic development through the promotion of local processing and value addition to the nation’s raw materials resources.
It also seeks to promote domestic processing while ensuring that no raw materials are exported from Nigeria without undergoing a minimum of 30% processing, thereby fostering value addition within the country.
On protection of local industries, the legislative Bill seeks to prohibit the importation of raw materials that are available for local production, safeguard local manufacturers from unfair competition and encourage the growth of the domestic industry.
“Enhance economic growth through stimulating economic development by creating jobs in local processing industries, increasing capacities of local firms and reducing reliance on imported raw materials.”
The legislative Bill will encourage sustainable practices through sustainable resource management and environmental protection through the utilisation of locally sourced materials, thereby reducing the carbon footprint associated with transporting raw materials.
The Bill, when it becomes an Act, will facilitate technological advancement of Nigeria through supporting 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 prohibit the importation of raw materials that are available for local production.”
It stated that RMRDC shall therefore, with its competence establish guidelines outlining the acceptable forms of processing, and that the guidelines shall include standards for quality, safety and environmental impact. It also stated that the RMRDC shall 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 that can be processed or produced locally shall be imported into Nigeria, and that the Federal Ministry of Trade and Investment in consultation with RMRDC shall compile and maintain a list of raw materials that are locally available for local production and the exercise shall be subject to periodic review.
It went further to state that RMRDC shall be responsible for monitoring compliance with the Act, and violators of this Act shall face penalties of fines including revocation of licenses.
According to the draft legislative Bill, the federal government through RMRDC shall provide financial and technical support to processing industries to enhance their capacity; and in partnership with the Ministry of Finance provide tax incentives to companies that invest in local processing facilities.
The RAW Materials Processing and Local Production Protection Act shall come into force 6 months after its passage.
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