To bolster Nigeria’s industrial growth, the Senate has approved a new bill mandating that all raw materials intended for export must undergo at least 30% local processing. This groundbreaking legislation aims to encourage value addition, strengthen domestic manufacturing, and reduce reliance on imported goods.

The decision follows the adoption of a comprehensive report by the Senate Committee on Science and Technology, which highlighted the need to amend the Raw Materials Research and Development Council Act of 2022. The bill, sponsored by Senator Onyekachi Nwebonyi of Ebonyi North, seeks to position Nigeria as a key player in processed raw materials and manufacturing.

Key Provisions of the Bill

Under the new regulations, exporters will be required to process at least 30% of raw materials locally before exporting. Failure to meet this threshold will attract a 15% levy on the export value of the raw materials, and violators may face suspension or cancellation of their raw material processing certificates.

The level of processing will be assessed based on factors such as the nature of the material, the technology employed, and the standards expected by target export markets. The Raw Materials Research and Development Council (RMRDC) will issue detailed guidelines defining what qualifies as 30% processing, setting benchmarks for quality, safety, and environmental sustainability.

Any raw materials exported without meeting the mandated processing level will be classified as “smuggled goods” and penalised under existing customs and trade laws. The bill also aims to encourage local industries by reducing the importation of materials that can be sourced or processed within Nigeria.

Impacts and Benefits

Senate President Godswill Akpabio emphasised that this legislation marks a critical step toward Nigeria’s industrialisation. He highlighted that the bill would create jobs, enhance Nigeria’s trade competitiveness, and promote responsible management of natural resources.

“This bill is expected to foster job creation, boost our global trade standing, and promote sustainable resource utilisation,” Akpabio remarked. “It will also encourage the adoption of advanced processing technologies within local industries, improving both efficiency and product quality.”

Furthermore, the law aims to shield local industries from unfair competition by reducing imports of materials already available locally. It also seeks to attract investments into Nigeria’s processing sector, encouraging the adoption of modern technologies that enhance productivity and environmental sustainability.

In conclusion, the Senate’s move is seen as a strategic step toward transforming Nigeria’s raw materials into valuable processed goods, ultimately driving economic growth, industrial diversification, and environmental responsibility.