Joel Ajayi
The Raw Materials Research and Development Council (RMRDC) has said the proposed legislation mandating a minimum of 30 per cent value addition to exportable raw materials will accelerate Nigeria’s industrialisation, create jobs and strengthen the nation’s economy.
Director-General of RMRDC, Professor Nnanyelugo Martin Ike-Muonso, made this known during an interview on Voice of Nigeria’s In the News programme in Abuja.
He explained that the proposed bill, which is currently receiving consideration from the National Assembly, the Federal Ministry of Justice and the Presidency, is designed to ensure that Nigeria no longer exports raw materials without processing them locally.
According to him, the legislation aligns with President Bola Tinubu’s industrialisation agenda and will promote local manufacturing by requiring exporters to add at least 30 per cent value to raw materials before export.
“When the bill becomes law, raw materials such as cocoa will no longer be exported in their raw state. They must undergo processing before export, creating more value within Nigeria,” he said.
Professor Ike-Muonso noted that the policy would attract foreign investors to establish processing plants in Nigeria rather than processing the country’s raw materials abroad.
He added that the initiative would facilitate technology transfer, strengthen local industries, encourage import substitution, generate employment and improve Nigeria’s foreign exchange earnings.
The RMRDC boss also disclosed that the proposed legislation seeks to restrict the importation of raw materials that are readily available in Nigeria, ensuring sufficient supply for domestic industries while supporting industrial growth.
Highlighting reforms within the Council, he said RMRDC has fully digitised its operations and strengthened internal management systems, earning the ISO 9001:2015 Quality Management System certification for operational excellence.
Professor Ike-Muonso further revealed that the Council has developed one of Nigeria’s most comprehensive raw materials databases through the second-generation Nigerian Information and Statistical System for Raw Materials and Products, linked to 41 databases to provide investors, manufacturers and policymakers with critical information.
He said the Council currently possesses about 47 patented research innovations, nearly 600 research outcomes ready for commercialisation, and has developed more than 70 processing machines through its Research Demonstration Plant Complex.
The Director-General also disclosed that RMRDC has signed Memoranda of Understanding with about 46 Nigerian universities and strengthened collaboration with the Manufacturers Association of Nigeria (MAN) to commercialise research findings and promote industrial innovation.
Using oranges as an example, he explained that establishing rural processing clusters would enable local communities to process orange concentrate for export instead of shipping fresh fruits overseas, thereby creating jobs and increasing export value.
Professor Ike-Muonso said the Council is expanding partnerships with state governments and international organisations, including the Benue State Government and the World Export Trade Organisation (WETRO), to enhance raw materials processing and technology development.
While commending President Bola Tinubu for improved funding support to the Council, he stressed that funding remains inadequate, noting that RMRDC currently receives less than 10 per cent of its statutory allocation.
He expressed optimism that the proposed Value Addition Bill would transform Nigeria’s industrial sector and serve as a model for other African countries seeking to maximise the value of their natural resources.
He lamented that many African nations continue to export raw materials for processing abroad before importing finished products at higher costs, describing the trend as a continuation of colonial economic structures.
According to him, the proposed legislation offers Nigeria an opportunity to reverse that trend by promoting domestic value addition, industrial growth and sustainable economic development.
