By Stella Azi
The Raw Materials Research and Development Council (RMRDC) Bill before the Senate of the National Assembly, to ensure local processing of at least 30% raw materials before export scales 2nd reading today (Tuesday), December 10, 2024.
The legislative Bill, sponsored by Senator Nwebonyi Peter Onyeka, from Ebonyi North Senatorial District, is hailed as being imperative for fostering Nigeria’s industrial growth and development through value addition locally.
The Bill seeks to amend the RMRDC Act 2022 to prioritise domestic production and local manufacturing.
During the plenary session at the Senate sitting, Onyeka, argued that the draft Bill when passed to law, would transform the national economy by boosting local manufacturing, create job opportunities, reduce import dependence, and ease pressure on foreign exchange demands.
The Senator, explained that the Bill will regulate the importation of raw materials that could have been processed locally, thereby boosting competitiveness and creating a favourable environment for local industries to flourish.
“Promoting local processing to a minimum of 30% or more will add value to our economy, It will also encourage innovation within local industries, leading to a significant increase in domestic production”, he said.
At its second reading, the Bill received overwhelming support from the upper chamber even as the Deputy Senate Minority leader, Senator Lere Oyewumi raised concern on the practicality of the Bill.
According to him, considering raw materials processors lack capacity for local processing mechanism.
He stated that strict enforcement may affect manufacturers who rely on import of such raw materials therefore, resulting to lose. He argued that such scenario be taken into consideration.
Earlier, during a chat with journalists, the Director General and Chief Executive officer RMRDC, Prof. Nnanyelugo Ike-Muonso, had noted that the 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.
He further noted that, when passed, the Bill will ensure that no raw material is exported without undergoing a minimum of 30% processing locally, adding that this significant stride in national raw materials and manufacturing policy reform will provide Nigerians with more forex for raw materials sourcing, protect natural our resources, and catalyse domestic processing capabilities in the country.
