Turning point for Nigeria as RMRDC’s 30 percent Value Addition bill nears presidential assent –Official

*The Raw Materials Research and Development Council’s 30 percent Value Addition Bill in Nigeria’s House of Representatives, when signed into law, will discourage export of unprocessed raw materials, and catalyse the establishment of processing industries across the country

Alexander Davis | ConsumerConnect

Nigeria’s journey towards industrial self-sufficiency and sustainable economic growth has reached a defining moment.

The Raw Materials Research and Development Council’s (RMRDC) 30 percent Value Addition Bill successfully passed its Third Reading in the country’s House of Representatives, Abuja, FCT, moving it closer to  President Bola Ahmed Tinubu for presidential assent.

The bill is titled: “A Bill for an Act to Amend the Raw Materials Research and Development Council Act, No. 28, 2022, to Provide for the Protection and Development of Nigeria’s Local Manufacturing and Processing Industries and Related Matters”.

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The Directorate of Corporate Affairs at RMRDC, in a statement explained the bill mandates that all raw materials produced or extracted in Nigeria “must undergo a minimum of 30 percent Local Value Addition before export.”

The regulatory agency also stated the landmark legislation aims to drive industrialisation, create jobs, conserve Foreign Exchange (Forex), and enhance Nigeria’s Gross Domestic Product (GDP) through expanded local processing and manufacturing.

Once signed into law, the policy is expected to discourage the export of unprocessed raw materials and catalyse the establishment of processing industries across the country.

Value Addition bill is a critical legislation, says RMRDC CEO

Speaking on the bill, Prof. Nnanyelugo Ike-Muonso, Director-General and Chief Executive Officer (CEO) of RMRDC, described the bill as a “critical piece of legislation” that aligns with the Council’s mandate to develop Nigeria’s raw materials base, and strengthen local manufacturing capacity.

Prof. Ike-Muonso stated: “The Raw Materials Value Addition Bill is a transformative step toward unlocking the full potential of Nigeria’s raw materials sector.

“Its implementation will create jobs, stimulate economic growth, and reduce poverty while ensuring that value generated from our natural resources remains within the country.”

The Director-General, a visionary leader under whose administration the bill gained significant traction, also reaffirmed RMRDC’s commitment to building a competitive industrial ecosystem driven by innovation, quality, and sustainability. Ike-Muonso emphasised the bill would reduce Nigeria’s dependence on imported inputs, improve the competitiveness of local products, and strengthen the foundation for industrial diversification.

RMRDC’s sustained advocacy and collaboration with stakeholders, including the 10th National Assembly, industry leaders, policymakers, and civil society organisations, have been instrumental in advancing the bill’s progress in the Federal Legislature.

It is noted that these engagements have raised national awareness about the strategic importance of local value addition in raw materials development in the country.

Industry experts have lauded the bill as a game-changer capable of transforming Nigeria’s economic landscape.

They note that promoting local value addition will enhance export quality, improve balance of trade, and boost investor confidence in the West African country’s manufacturing sector.

Besides, passage of the bill will also create opportunities for Small and Medium-scale Enterprises (SMEs), the backbone of Nigeria’s economy, by enabling them to participate in value chains that are previously dominated by imported goods.

However, experts have also highlighted the importance of supporting infrastructure, reliable energy supply, and access to finance to ensure an effective implementation of the bill, when it becomes a law.

RMRDC Value Addition Bill and Nigeria’s industrial growth

The legislative success of the RMRDC Value Addition Bill signifies a major stride towards actualising Nigeria’s industrial transformation agenda. With the presidential assent imminent, the country stands on the verge of a breakthrough that could establish it as the industrial hub of Africa.

This bill has the potential to transform Nigeria’s economy and improve the lives of its citizens.

Nigerians are optimistic that with the collective will of government, industry, and stakeholders, this milestone will usher in a new era of industrial prosperity for the citizenry.

As Nigerians await President Tinubu’s signature, the passage of the 30 percent Value Addition Bill stands as a testament to the collaborative efforts of the National Assembly (NASS), RMRDC, and stakeholders in shaping a more resilient and self-reliant Nigerian economy.