Muhammed Abubakar, Reporting
THE Federal Government has called for urgent action on a proposed bill mandating a minimum of 30 percent value addition to all exportable raw materials, describing the legislation as a potential game-changer for Nigeria’s industrialisation and economic transformation.
Director General of the Raw Materials Research and Development Council (RMRDC), Prof. Nnanyelugo Martin Ike-Muonso, made the call during the Voice of Nigeria programme, In the News, in Abuja on Friday. He revealed that the bill, initiated by the Council shortly after he assumed office, is currently receiving attention from the National Assembly, the Federal Ministry of Justice and the Presidency.
‘Raw Materials Cannot Be Exported Without Value Addition’
Ike-Muonso declared that once signed into law, the legislation will accelerate industrialisation, which remains one of President Bola Tinubu’s key economic priorities.
“Eventually, it will become law, meaning that raw materials cannot be exported from Nigeria without value being added to them. This will lay the foundation for industrialisation because local processing will be significantly expanded,” he said.
The Director-General explained that the legislation would require exporters to add at least 30 percent value to raw materials before export.
“For example, cocoa can no longer be exported in its raw form. It must undergo some level of processing before export. This proposal aligns with the President’s position against exporting raw resources only to import finished products at much higher costs,” he stated.
Attracting Investment and Creating Jobs
Ike-Muonso noted that the legislation would attract foreign investment into local processing industries, as investors who currently process Nigerian raw materials abroad would be encouraged to establish processing facilities within the country. This would facilitate technology transfer, strengthen local manufacturing, promote import substitution and create employment opportunities.
“Investors will be encouraged to process our raw materials locally. Scientists and researchers will also come to Nigeria to identify additional raw materials and develop new processing technologies,” he said.
The bill also proposes restrictions on the importation of raw materials readily available in Nigeria in sufficient quantity and quality, which would guarantee adequate supplies for local industries, improve access to financing, create jobs and positively impact the value of the naira through improved foreign exchange earnings.
RMRDC’s Transformation Journey
The Director-General said the Council had restructured its operations to improve efficiency and service delivery, with management systems strengthened, staff performance expectations enhanced and processes fully digitalised. The Council has obtained the ISO 9001:2015 Quality Management System certification.
“We are among the few government agencies that have subjected their processes to international quality assessment and received certification for management excellence,” he said.
Ike-Muonso further disclosed that the Council has developed one of Nigeria’s most comprehensive raw materials databases. The newly launched second-generation Nigerian Information and Statistical System for Raw Materials and Products is linked to 41 databases, providing investors, manufacturers and policymakers with free access to critical information on raw materials and investment opportunities.
Research Innovations and Commercialisation
According to the Director-General, RMRDC currently has about 47 patented research innovations and nearly 600 research outcomes available for commercialisation and investor engagement. The Council operates specialised departments covering agro-allied resources, technology development and industrial research, alongside a Research Demonstration Plant Complex where technologies are developed, tested and commercialised.
“Our engineers fabricate and design many of the processing equipment used in our demonstration plants. We have developed more than 70 different machines for processing various raw materials,” he said.
Academic and International Partnerships
Ike-Muonso disclosed that the Council has Memoranda of Understanding with about 46 universities across Nigeria, with designated desk officers supporting research related to raw materials development and ensuring that viable innovations are commercialised for industrial use.
He said RMRDC is currently working with the Benue State Government and several international organisations. The World Export Trade Organisation (WETRO) has pledged to provide technologies to support raw material processing and research, while discussions are ongoing with investors interested in developing products using Nigerian raw materials.
The Orange Example
To illustrate the potential benefits of value addition, he cited the example of oranges. Instead of exporting fresh oranges and importing processed juice, rural processing clusters could enable local communities, particularly women, to produce orange concentrate for export.
“Such simple processing activities could easily exceed the proposed 30 percent value addition threshold while creating jobs, boosting technology development and increasing foreign exchange earnings,” he said.
‘Like Oliver Twist’
Ike-Muonso commended President Tinubu for supporting the Council through improved funding but noted that funding remained inadequate.
“Like Oliver Twist, we continue to ask for more because we are still far from where we should be. We currently receive less than 10 per cent of the funding provided for under the law,” he said.
A Vision for Africa’s Liberation
He expressed confidence that the proposed legislation would not only transform Nigeria’s industrial sector but also inspire similar reforms across Africa.
“Today, different countries have effectively partitioned Africa’s raw materials. Vietnam processes our cashew, India processes our cocoa, while China processes our lithium and rare earth minerals. This mirrors the colonial economic structure. Until we change that narrative, we will continue to lose the full value of our resources,” he said.
“I want to be remembered as someone who championed this cause and helped liberate Nigeria and, ultimately, Africa from raw material exploitation.”
The Raw Materials Research and Development Council was established in 1988 following recommendations arising from a 1983 workshop organised by the then Federal Ministry of Industries in collaboration with the National Institute for Socio-Economic Research and the Manufacturers Association of Nigeria.
