The proposed bill mandating a minimum of 30 percent value addition to all exportable raw materials has been described as a major catalyst for Nigeria’s industrialisation and economic growth.
The Director-General of the Raw Materials Research and Development Council (RMRDC), Professor Nnanyelugo Martin Ike-Muonso, made the assertion during Voice of Nigeria’s programme, In the News, in Abuja.
He said the bill, initiated by the Council shortly after he assumed office, is currently receiving attention from the National Assembly, the Federal Ministry of Justice and the Presidency.
According to him, once signed into law, it will accelerate industrialisation, which remains one of President Bola Tinubu’s key economic priorities.
“Eventually, it will become law, meaning that raw materials cannot be exported from Nigeria without value being added to them. This will lay the foundation for industrialisation because local processing will be significantly expanded,” he said.
Professor Ike-Muonso explained that the legislation would require exporters to add at least 30 percent value to raw materials before export.
“For example, cocoa can no longer be exported in its raw form. It must undergo some level of processing before export. This proposal aligns with the President’s position against exporting raw resources only to import finished products at much higher costs,” he added.
He noted that the legislation would also attract foreign investment into local processing industries, as investors who currently process Nigerian raw materials abroad would be encouraged to establish processing facilities within the country.
READ ALSO: RMRDC Lauds President Tinubu’s Economic Transformation
According to him, this would facilitate technology transfer, strengthen local manufacturing, promote import substitution and create employment opportunities.
“Investors will be encouraged to process our raw materials locally. Scientists and researchers will also come to Nigeria to identify additional raw materials and develop new processing technologies.
“The bill also proposes restrictions on the importation of raw materials that are readily available in Nigeria in sufficient quantity and quality. This will guarantee adequate supplies for local industries, improve access to financing for industrial activities, create jobs and positively impact the value of the naira through improved foreign exchange earnings.”
The RMRDC Director-General said the Council had restructured its operations to improve efficiency and service delivery.
He explained that management systems has been strengthened, staff performance expectations enhanced and processes fully digitalised, resulting in the Council obtaining the ISO 9001:2015 Quality Management System certification.
“We are among the few government agencies that have subjected their processes to international quality assessment and received certification for management excellence,” he said.
Raw Materials Database
Professor Ike-Muonso further disclosed that the Council has developed one of Nigeria’s most comprehensive raw materials databases.
He said the newly launched second-generation Nigerian Information and Statistical System for Raw Materials and Products is linked to 41 databases, providing investors, manufacturers and policymakers with free access to critical information on raw materials and investment opportunities.
READ ALSO: Minister Urges Swift Passage of 30% Value Addition Bill
As part of its statutory mandate, he said the Council continues to invest heavily in research and innovation.
According to him, RMRDC currently has about 47 patented research innovations and nearly 600 research outcomes available for commercialisation and investor engagement.
He added that the Council operates specialised departments covering agro-allied resources, technology development and industrial research, alongside a Research Demonstration Plant Complex where technologies are developed, tested and commercialised.
“Our engineers fabricate and design many of the processing equipment used in our demonstration plants. We have developed more than 70 different machines for processing various raw materials,” he said.
Professor Ike-Muonso said RMRDC has also strengthened collaboration with the Manufacturers Association of Nigeria (MAN), making its patented and non-patented research outcomes available to industries and investors.
He disclosed that the Council has Memoranda of Understanding (MoUs) with about 46 universities across Nigeria, with designated desk officers supporting research related to raw materials development and ensuring that viable innovations are commercialised for industrial use.
According to him, these partnerships have strengthened collaboration between academia, industry and government research institutions.
To illustrate the potential benefits of value addition, he cited the example of oranges.
Instead of exporting fresh oranges and importing processed juice, he said rural processing clusters could enable local communities, particularly women, to produce orange concentrate for export.
He noted that such simple processing activities could easily exceed the proposed 30 percent value addition threshold while creating jobs, boosting technology development and increasing foreign exchange earnings.
State Collaborations
The Director-General stressed that the Council could not achieve its objectives alone and had therefore expanded collaboration with state governments and international development partners.
He said RMRDC is currently working with the Benue State Government and several international organisations.
According to him, the World Export Trade Organisation (WETRO) has pledged to provide technologies to support raw material processing and research, while discussions are ongoing with investors interested in developing products using Nigerian raw materials.
Professor Ike-Muonso commended President Bola Tinubu for supporting the Council through improved funding, noting that the intervention had enhanced its capacity to deliver on its mandate.
However, he maintained that funding remained inadequate.
“Like Oliver Twist, we continue to ask for more because we are still far from where we should be. We currently receive less than 10 per cent of the funding provided for under the law,” he said.
He expressed confidence that the proposed legislation would not only transform Nigeria’s industrial sector but also inspire similar reforms across Africa.
According to him, African countries have long remained suppliers of raw materials to foreign industries, which process them into finished products before exporting them back to the continent at higher prices.
“Today, different countries have effectively partitioned Africa’s raw materials. Vietnam processes our cashew, India processes our cocoa, while China processes our lithium and rare earth minerals.
“This mirrors the colonial economic structure. Until we change that narrative, we will continue to lose the full value of our resources. I want to be remembered as someone who championed this cause and helped liberate Nigeria and, ultimately, Africa from raw material exploitation.”
The Raw Materials Research and Development Council was established in 1988 following recommendations arising from a 1983 workshop organised by the then Federal Ministry of Industries in collaboration with the National Institute for Socio-Economic Research and the Manufacturers Association of Nigeria.
