30% Value Addition Bill Will Enhance Nigeria’s Industrialization Drive – RMRDC Boss

The Director-General of the Raw Materials Research and Development Council (RMRDC), Professor Nnanyelugo Martin Ike-Muonso, has said that the proposed bill mandating a minimum of 30 percent value addition to all exportable raw materials will boost Nigeria’s industrialization drive and economic growth.

The RMRDC boss stated this during a Voice of Nigeria’s (VON) programme, ‘In the News,’ in Abuja, stressing 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.

He expressed confidence that once the bill is accented to by the President after the rigorous work by the lawmakers, Nigeria’s industrialization will be accelerated in line with the Renewed Hope Agenda of President Bola Tinubu in his quest to improve the Nigerian economy.

“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.

Professor Ike-Muonso further asserted that the legislation would require exporters to add at least 30 percent value to raw materials before export.

He said “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.”

According to the erudite scholar, the legislation would also 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.

He added that this value addition will 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.

“The bill also proposes restrictions on the importation of raw materials that are readily available in Nigeria in sufficient quantity and quality. This will guarantee adequate supplies for local industries, improve access to financing for industrial activities, create jobs and positively impact the value of the naira through improved foreign exchange earnings.”