The Nigerian Senate has passed a landmark bill requiring that all raw materials exported from the country must undergo a minimum of 30 percent local processing.
This move followed the adoption of a report by the Senate Committee on Science and Technology on the amendment of the Raw Materials Research and Development Council (RMRDC) Act, 2022.
Sponsored by Senator Onyekachi Nwebonyi (Ebonyi North), the bill is aimed at boosting value addition, strengthening the local manufacturing sector, reducing dependence on imports, and fostering sustainable economic growth.
According to the bill, exporters who fail to meet the 30 percent local processing requirement will face a 15 percent levy on the export value of the raw materials. In addition, such exporters risk suspension or revocation of their Raw Material Value Addition Certificates.
The legislation stipulates that the level of processing will be evaluated based on the type of material, the technology employed, and compliance with the standards of the destination market.
The Raw Materials Research and Development Council will be tasked with issuing comprehensive guidelines that define what constitutes 30 percent processing. These will include clear benchmarks for quality, safety, and environmental sustainability.
Raw materials exported without meeting the threshold will be classified as “smuggled goods” and subjected to penalties under existing customs and trade laws.
The bill also seeks to promote domestic industries by discouraging the importation of raw materials that are available or can be processed locally.
Commenting on the bill, Senate President Godswill Akpabio described its passage as a critical milestone in Nigeria’s industrialisation efforts.
“This bill is expected to create job opportunities, boost Nigeria’s trade competitiveness globally, and promote responsible management of the country’s natural resources,” Akpabio said.
He further emphasized that the legislation would help reduce reliance on wholly imported raw materials, encourage the adoption of best practices in environmental sustainability, and support the use of advanced processing technologies to enhance efficiency and product quality.
“The law will reduce imports of materials already available locally, protect local industries from unfair competition, and encourage investment in domestic processing capacity,” he added.
Akpabio noted that the bill is designed to attract investors interested in processing raw materials within Nigeria, thereby stimulating growth in the industrial sector.
