RMRDC Bill Threatens Manufacturing, Exports With Risky 30% Value-addition Push, CPPE Warns

The Centre for the Promotion of Private Enterprise (CPPE) has issued a strong warning over the Raw Materials Research and Development Council (RMRDC) Bill before the National Assembly, cautioning that its key provisions could significantly damage Nigeria’s manufacturing and export sectors.

The bill seeks to ban the export of any primary product unless it has undergone at least 30 per cent local value addition and would prohibit the importation of raw materials considered sufficiently available locally.

CPPE’s director, Dr. Muda Yusuf, described the bill as “simplistic” and potentially harmful, arguing it risks thousands of jobs tied to non-oil exports like cocoa, cashew, and sesame, and could worsen bureaucratic corruption.

The organisation also criticised the bill’s vague definitions and lack of clear implementation metrics, warning that it could undermine both exporters and processors, and calling for the National Assembly to halt deliberations and for RMRDC to focus on its research mandate.

While acknowledging the merits of encouraging value addition, the CPPE warned that the bill, if passed, could create serious unintended consequences. “What is needed is a win-win proposition, not a zero-sum game,” Yusuf said, arguing that the proposal fails to balance the interests of exporters and processors.

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The CPPE expressed concern over the vague metrics and implementation framework suggested by the bill. Querying what would constitute the 30 per cent value addition, and who determines it as proposed in the bill, the CPPE questioned the claim that raw materials are sufficiently available locally.

The organisation noted that thousands of jobs tied to Nigeria’s leading non-oil exports, such as cocoa, cashew, shea butter, sesame, and ginger, could be put at risk. It also highlighted that even crude oil, Nigeria’s top export, was not subjected to domestic refining until recently.

“Most agro-processors have collapsed not because of raw materials scarcity, but due to structural issues such as high energy costs, poor infrastructure, and unfavourable policy environments,” the statement read.

The CPPE also criticised what it sees as an overreach by the RMRDC, stating that matters of import and export regulation fall under fiscal policy, which is the responsibility of the Ministry of Finance, in coordination with the Ministries of National Planning, Industry, Trade and Investment, and crucially, the Nigeria Export Promotion Council (NEPC).

Yusuf further warned that the proposed legislation could open new doors for bureaucratic corruption, as businesses would be forced to navigate yet another layer of government approvals.

“This bill has a very weak value proposition,” the CPPE concluded, calling on the National Assembly to discontinue deliberations on the matter and urging the RMRDC to redirect its efforts towards its core mandate—researching and providing cost-effective raw material options for Nigerian manufacturers.

“The council’s involvement in trade policy matters is an aberration,” Yusuf added. “Trade policy must remain flexible and responsive, not locked into rigid legislation.”