Before any raw materials may be exported from Nigeria, a minimum of 30% local value addition must be added, according to a law that Senate President Godswill Akpabio has promised the National Assembly will approve.
Speaking at his Abuja office on Wednesday, Akpabio made the comment while meeting with representatives of the Raw Materials Research and Development Council (RMRDC), who were accompanied by Nnanyelugo Martin Ike-Muonso, the council’s director general.
The Senate president characterized the proposed modification to the RMRDC Act as “a moral compass” that might serve as a reference for other African countries, in addition to being crucial to Nigeria’s economic advancement, according to a press release issued by Jackson Udom, his special assistant on media.
“We would have had at least a factory for those chains that would have also created jobs for our people outside of what the farmers are doing if any of the values were added in Nigeria before exporting them,” Akpabio stated.
“Innovative changes in technology would have also occurred.”
In order to create stronger value chains across industries, Akpabio underlined the significance of coordinating Nigeria’s push for research and development with legislative support.
“It is regrettable that although we grow cocoa in Nigeria, we ultimately import the same cocoa products from abroad at a higher cost and without any inputs,” he continued.
Raw Materials and the Deficit in Solid Minerals
Citing the solid minerals industry as one of the most severely impacted by the absence of value addition, Akpabio commended Senate Deputy Chief Whip Senator Onyekachi Nwebonyi for introducing the amendment bill.
According to him, “the solid mineral sector is the most pitiful because we are not adding any value before we sell it.”
As a result, it is sold at a very low price, and if you take the whole picture, you will realize that, in terms of identifying and utilizing the potential inside its borders, African development in 2025 is still in a primitive form.
“The only reason poverty is getting worse is ignorance.”
In order to educate Nigerians, particularly the younger generation, about the value and economic potential of solid minerals and raw materials, Akpabio urged the council to launch a grassroots initiative.
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According to him, “Nigerians and secondary school students should be taught something about raw materials, solid minerals for recognition wherever they found one.”
“We can’t let this go on. Nigeria would have taken action to guarantee that any raw material being exported from the nation had at least 30% added value if we were to help you pass the bill and have the president sign it into law.
RMRDC’s optimism
Ike-Muonso, the Director-General of RMRDC, had earlier thanked the meeting and expressed his hope that the National Assembly would support the legislation to fortify Nigeria’s industrial foundation.
He said, “We have seen reforms like the Tax Administration Bills, but the one that worries us the most is the bill to amend the Raw Materials Research and Development Council Act, which is primarily to ensure that we do not export raw materials out of the country without them having at least 30 percent of value-added.”
“Given that Nigeria is a continent leader, this bill is undoubtedly the most important one in Africa and will transform the future of this nation.”
In addition, he invited the Senate President to the Africa Raw Materials Summit, which is scheduled for later this month.
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