The President of the Senate, Godswill Akpabio, has reiterated the commitment of the National Assembly to support legislation that would require raw materials exported from Nigeria to undergo at least 30 percent local value addition.
This initiative aims to stimulate industrial growth, create employment opportunities, and strengthen the country’s economy.
Akpabio made this declaration during a meeting with officials of the Raw Materials Research and Development Council (RMRDC), led by its Director-General, Nnanyelugo Martin Ike-Muonso, at his office in Abuja. He highlighted the need to amend the existing RMRDC Act to ensure that Nigeria maximizes the economic benefits of its natural resources rather than exporting them in their raw form.
A Vision for Economic Transformation
In a statement released by his media aide, Jackson Udom, Akpabio emphasized that the proposed amendment is not only vital to Nigeria’s economic development but could also serve as a guiding framework for other African nations looking to enhance their industrial capacities.
According to him, enforcing a policy that mandates local value addition would promote the establishment of processing factories and manufacturing industries, thereby creating employment beyond the agricultural sector. Akpabio noted that if Nigeria had developed value-added industries for various raw materials, the country would have been able to reap greater economic benefits, particularly in terms of job creation and technological advancements.
“If a portion of the value was added in Nigeria before exporting these resources, we would have established factories that generate employment opportunities beyond farming activities,” Akpabio stated.
Additionally, he pointed out that technological innovations would naturally follow once industries prioritize research and development to improve processing capabilities.
Building Stronger Value Chains
Akpabio stressed the need for legislative backing to align Nigeria’s push for economic diversification with sustainable development strategies. He lamented the current situation in which Nigeria produces cocoa yet imports cocoa-derived products at higher costs—an issue that underscores the necessity of developing local value chains across industries.
“It is disheartening that despite our ability to cultivate cocoa, we still import cocoa products from other countries at a significant cost, without any meaningful local contribution to its processing,” he remarked.
Addressing Challenges in the Solid Minerals Sector
Commending Senator Onyekachi Nwebonyi for initiating the amendment bill, Akpabio highlighted the solid minerals industry as one of the worst affected sectors due to the lack of value addition before exports. He warned that failing to refine Nigeria’s natural resources before shipping them abroad leads to undervaluation, depriving the country of substantial economic gains.
“The situation is even more concerning in the solid minerals sector, where we export resources without any form of processing or refinement,” he observed.
Akpabio further emphasized that Africa, despite its vast natural wealth, remains in an underdeveloped state due to its failure to harness the full potential of its raw materials. He argued that increased local processing would significantly contribute to economic transformation across the continent.
Educating Future Generations
To ensure sustainable growth, Akpabio urged the RMRDC to launch a grassroots campaign to raise awareness about the significance of raw materials and solid minerals among Nigerians, particularly students.
“We must incorporate lessons on raw materials and solid minerals in school curriculums, so our younger generations can identify these valuable resources and understand their economic potential,” he suggested.
He further asserted that passing the proposed bill and having it signed into law would be a crucial step toward ensuring that all raw materials exported from Nigeria undergo at least 30 percent value addition.
Optimism from the RMRDC
Earlier in the meeting, RMRDC Director-General Ike-Muonso expressed gratitude for the Senate President’s support and voiced his confidence that the National Assembly would endorse the legislation. He described the amendment as a transformative policy that could redefine Nigeria’s industrial landscape.
“We have seen legislative reforms in various sectors, but the amendment to the RMRDC Act is particularly vital. It ensures that no raw material is exported without undergoing significant local processing,” Ike-Muonso stated.
He further asserted that the proposed law is poised to strengthen Nigeria’s position as a leader in Africa’s industrial development.
In a final remark, the RMRDC Director-General invited Akpabio to attend the Africa Raw Materials Summit, scheduled for later in the month, where discussions on industrial policy, resource optimization, and sustainable development would take center stage.
