By Festus Obot
The Director General of the Raw Materials Research and Development Council (RMRDC), Prof Nnanyelugo Ike-Muonso has revealed that the 30% raw materials value addition bill being proposed by the Council will boost manufacturing activities and create new jobs for Nigerians across multiple sectors of the economy.
Prof Ike-Muonso who was the Keynote Speaker at the 37th Annual General Meeting (AGM) of the Manufacturers Association of Nigeria (MAN) Anambra, Enugu and Ebonyi Branch, said that the Bill will protect Nigeria’s manufacturing as it will ensure that the raw materials input required for manufacturing stays in Nigeria. He described the Bill as the single most important legislation with the capacity to fast track the country’s industrial growth and economic development. In the words of the RMRDC DG, “the RMRDC 30% Value Addition Bill, currently awaiting Presidential Assent, is the single most significant policy shift for this sector in decades. This game-changing legislation mandates at least 30% local value addition to raw materials before export, directly tackling our raw export curse by compelling processing, beneficiation, and manufacturing at home”, he stated.
Speaking on the topic: “Exploring Opportunities for Backward Integration and Local Raw Materials Sourcing for the Manufacturing Sector,” Prof Ike-Muonso emphasized that “effective backward integration and local sourcing of raw materials for the manufacturing sector are, quite simply, the core operations strategy for every manufacturer today, representing the roadmap to survival, stability and sustainable growth”.
The RMRDC boss lamented that “for too long, we have operated on a fundamentally unsustainable model, one in which we export our natural wealth in its rawest, cheapest form, only to turn around and import finished goods at exorbitant costs”.
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He reminded participants that one of the core objectives of the founding fathers of RMRDC was to support manufacturing industries in Nigeria to source their raw materials locally, and through its import substitution programme, the Council has continued to discourage import of raw materials for which Nigeria has both comparative and competitive advantage.
In his remarks, the Special Guest of Honour at the event, distinguished Senator Osita Bonaventure Izunaso thanked the RMRDC DG for his insightful and thought-provoking presentation. He stated that the National Assembly recognizing the importance of the RMRDC 30% Value Addition Bill gave the Bill accelerated hearing at both the Senate and the House of Representatives. He noted that the provisions of the Bill align fully with the Nigeria First agenda of the Federal Government and assured that the Bill will receive the full blessing of Mr President. He stressed that any nation that desires to become an industrialized nation cannot rely on export of its raw materials while importing poverty and unemployment as finished goods.
Distinguished Senator Izunaso described the theme of the AGM as the topic for the moment and urged participants to come with recommendations that would form the basis for ensuring policies that have the capacity to revamp the nation’s manufacturing sector for optimal performance.
The President of MAN, Otunba Francis Meshionye, in a goodwill message commended the organisers of the AGM and described the theme of the 37th AGM: “Exploring Opportunities for Backward Integration and Local Raw Materials Sourcing for the Manufacturing Sector” as timely and appropriate especially at a time where industries and manufacturers are grappling with high cost of doing of doing business in Nigeria. He challenged participants to engage meaningfully to proffer workable solutions that will impact positively and significantly cushion the unfavorable effects of the current business environment.
