By Adaora Adibe
The proposed 30% Raw Materials Value Addition Bill by the Raw Materials Research and Development Council (RMRDC) has recorded another milestone in the legislative process as it passed the third reading at the House of Representatives, bringing it closer to becoming law.
The bill, titled “A Bill for an Act to Amend the Raw Materials Research and Development Council (RMRDC) Act, No. 28, 2022, to Provide for the Protection and Development of Nigeria’s Local Manufacturing and Processing Industries and Related Matters,” seeks to ensure that all raw materials produced or extracted in Nigeria undergo a minimum of 30% local value addition before export. The initiative is aimed at driving industrialization, creating jobs, conserving foreign exchange, and boosting the nation’s gross domestic product (GDP) through enhanced local processing and manufacturing.
With the House of Representatives’ approval, the next step is to transmit the bill to the President for assent. When signed into law, the legislation is expected to significantly transform Nigeria’s economic landscape by discouraging the export of unprocessed raw materials and promoting the establishment of processing industries across the country.
According to the RMRDC Director General, Prof. Nnanyelugo Ike-Muonso, the bill aligns with the Council’s core mandate of developing the nation’s raw materials base and ensuring that local industries have access to quality inputs for production. It also aims to reduce Nigeria’s dependence on imported raw materials, which currently account for a large portion of industrial inputs, and encourage value retention within the country.
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Industry experts have described the proposed legislation as a game-changer capable of stimulating industrial growth, improving export quality, and enhancing the competitiveness of Nigerian products in global markets. However, they also emphasize the need for supporting infrastructure, affordable energy, and access to finance to ensure effective implementation once the bill becomes law.
The progression of the Value Addition Bill represents a major step toward actualizing Nigeria’s industrial transformation agenda. With its anticipated presidential assent, the policy could set the stage for a new era of economic diversification driven by innovation, manufacturing, and value creation.
