The Centre for the Promotion of Private Enterprise (CPPE) has opposed the raw materials bill before the National Assembly, warning it may harm Nigerian exporters and manufacturers.
This is contained in a statement on Monday by Dr Muda Yusuf, Chief Executive Officer of CPPE.
The News Agency of Nigeria (NAN) reports that the Raw Materials Research and Development Council (RMRDC) bill mandates 30 per cent local value addition before exports.
It also prohibits manufacturers from importing raw materials considered to be available in sufficient local quantities.
Yusuf acknowledged that promoting local value addition appears beneficial and could enhance export earnings.
However, he stressed the need for a balanced approach between primary product exporters and local processors.
He called for a thorough assessment of raw material availability before enforcing any ban on imports for manufacturers.
“A win-win approach is needed, not a zero-sum situation that punishes primary product exporters,” Yusuf said.
He warned that thousands of jobs in the primary products export chain could be lost.
“Nigeria’s key non-oil exports include cocoa, cashew nuts, gum arabic, ginger, sesame seeds, shea butter, and crude oil,” he noted.
Yusuf questioned how the 30 per cent value addition would be measured and who would authorise exports under the new rules.
He also raised concerns about how the government would identify which raw materials can be imported and the timeline for implementation.
He says the bill ignores significant challenges affecting local manufacturing and value addition.
“Context matters. We must understand the broader economic challenges before shaping raw materials policy.
“Many agro-processors failed due to poor productivity and competitiveness, not just lack of raw materials,” Yusuf explained.
He listed high energy costs, limited funding, poor logistics, red tape, exchange rate instability, and multiple taxes as major obstacles.
“These issues must be tackled to promote local value addition genuinely,” he said.
Yusuf cautioned that the bill could introduce more corruption through additional layers of export approvals.
He added that regulating exports and imports is outside the mandate of the RMRDC or the Ministry of Science and Technology.
He noted that the Ministries of Finance, Industry, Trade and Investment handle fiscal policy matters.
“The Nigeria Export Promotion Council (NEPC) must also be involved,” Yusuf emphasised.
He said this is vital to assessing the impacts on non-oil exports, manufacturing, and the overall economy.
“It also ensures consistency and coordination in policy making,” he added.
Yusuf urged the National Assembly to halt the bill and advise the RMRDC to concentrate on its core research functions.
He added that import and export rules are usually governed by trade policy, not legislation.
“These policies change with economic conditions and are handled by fiscal authorities,” Yusuf said. (NAN)
We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →
Join Our WhatsApp Channel
