By Dele Ogbodo
With the Raw Materials and Research Development Council (RMRDC) and German based GIZ’s partnership in the making, there are optimism that the full potential of Nigeria’s raw materials endowment is set to be unlocked for the country’s sustainable economic development and job creation.
The collaboration, according to a statement from the Council is coming a day to reading of the proposed legislative bill on the amendment of the RMRDC bill that will see the council enforcing the 30% raw materials value addition law when passed.
The bill further aims to create decent employment opportunities through the development of commodity-based clusters and the strengthening of raw materials processing capacity in the country, RMRDC, said.
Prof. Nnanyelugo Ike-Muonso, the Director-General of RMRDC, emphasized that the council is actively seeking the strategic partnerships to to achieve initiatives such as cluster development, raw materials repurposing, circularity, and waste management.
By leveraging these methods, the DG, sees RMRDC boosting local capacity for repurposing raw materials while addressing waste management issues, even as he notes that this approach mirrors successful models seen globally, such as Germany’s focus on circular economies, which has significantly contributed to the country’s industrial strength.
In further discussions with GIZ officials, Ike-Muonso, brought attention to bear on critical challenges in the raw materials market, technologies for raw materials processing, and the pressing issue of post-harvest losses in Nigeria’s agriculture.
According to him, over 50% of onion produced in Nigeria is lost annually due to poor post-harvest management, underscoring the need for improved infrastructure.
The World Bank, puts Nigeria’s losses in this regard to over $4 billion every year due to inefficiencies in post-harvest handling and a lack of processing facilities.
This loss, according to him, is considerably higher than the global average, where post-harvest losses in developing countries typically range from 20% to 30%, as reported by the Food and Agriculture Organization (FAO).
He noted that the observed inefficiencies costituted a significant barrier to the growth of the agricultural processing industry, an area that holds immense potential for economic development.
Drawing on global best practices, Ike-Muonso, highlighted how countries like India have successfully reduced post-harvest losses by up to 30% through the implementation of advanced post-harvest management techniques.
In his views, such strategies have saved India more than $20 billion annually and created vast employment opportunities. If adopted in Nigeria, similar strategies could enhance food security, stimulate job creation, and significantly increase agricultural productivity.
To tackle these issues, the RMRDC DG sought GIZ’s expertise in capacity building, especially in training farmers and processors.
This is while it could be noted that GIZ, with its long history of successful development projects across Africa, has implemented similar initiatives in countries such as Ghana and Kenya, improving agricultural practices and reducing post-harvest losses. In Ghana, for example, GIZ’s work in agro-processing has led to a 25% increase in value-added agricultural products, directly contributing to rural job creation and poverty alleviation.
Furthermore, Ike-Muonso invited GIZ to support the upgrading of RMRDC’s Research Demonstration Plants Complex (RDPC), a critical facility that promotes cluster development and raw materials processing innovations.
The RDPC, which has already made strides in raw materials processing, could greatly benefit from GIZ’s technical expertise in developing sustainable production methods. With GIZ’s support, the RDPC could serve as a key player in transforming Nigeria’s industrial sector, similar to how Germany’s Fraunhofer Institutes drive technological innovation and industrial applications.
In addition to these initiatives, the RMRDC DG extended an invitation to GIZ to participate in the upcoming Raw Materials African Summit, scheduled for May 20-22.
The summit aims to bring together stakeholders from across Africa to discuss raw materials development and utilization to which GIZ through its top management team present at the courtesy visit by the RMRDC DG and his team, pledged their willingness to participate, thus reinforcing its commitment to advancing the raw materials sector on the continent.
The summit, according to Prof Ike-Muonso, will provide an invaluable platform for cross-border cooperation, innovation, and knowledge exchange, helping to address common challenges and devise solutions to accelerate industrialization across Africa.
The partnership between RMRDC and GIZ is expected to foster synergies that align with both organizations’ goals. According to GIZ, which has been active in Nigeria for over 51 years, has played a key role in building development clusters in various local commodities. Through its expertise, GIZ has demonstrated an ability to create lasting economic value and support sustainable development initiatives in regions that need it most. By leveraging GIZ’s global networks and knowledge, the partnership will facilitate access to new markets, enhance the competitiveness of Nigeria’s industrial sector, and promote sustainable practices.
Speaking earlier, Mr Habu Ahmadu, Programmes coordinator at the GIZ, the proposed partnership is poised to significantly advance Nigeria’s industrial development and generate substantial employment opportunities.
According to the World Bank, Nigeria’s industrial sector has the potential to contribute 40% of the country’s GDP, a significant increase from its current contribution of approximately 25%.
With the backing of GIZ, Ahmadu expressed optimism that RMRDC can unlock the full potential of Nigeria’s raw materials sector, sustainably driving economic growth and job creation.
“By investing in capacity building, encouraging technological innovation, and optimizing the use of local resources, this partnership could transform Nigeria’s industrial base, reduce reliance on imports, and foster inclusive economic growth across the country.” He said.
Through this strategic collaboration, Nigeria is well-positioned to strengthen its industrial capabilities, tap into new markets, and create a more sustainable and resilient economy.
The partnership between RMRDC and GIZ signals a new era of industrial development for Nigeria, with the potential to serve as a model for other emerging economies across Africa and beyond.
