The Nigerian Senate has passed a landmark bill mandating that all raw materials must undergo a minimum of 30 percent local processing before being exported out of the country.
The decision 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 aims to promote value addition, boost the local manufacturing sector, reduce Nigeria’s reliance on imports, and support sustainable economic growth.
Under the new provisions, exporters who fail to meet the 30% processing requirement will face a 15% levy on the export value of the raw materials. Additionally, they risk suspension or revocation of their raw material value addition certificates.
The level of local processing will be assessed based on the nature of the material, the technology applied, and export market standards. The RMRDC will be responsible for issuing detailed guidelines to define what qualifies as 30 percent processing, including benchmarks for quality, safety, and environmental sustainability.
Any raw material exported without meeting the threshold will be classified as “smuggled goods” and penalised under existing customs and trade laws.
The bill also includes provisions to encourage local sourcing, discourage the importation of materials available domestically, and support industrial growth.
Speaking on the development, Senate President Godswill Akpabio described the bill as a major milestone in Nigeria’s push for industrialisation.
“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 stated.
He added that the law would also: Promote sustainable resource management, Encourage environmental protection, Reduce carbon footprints, Support adoption of advanced processing technologies, Improve efficiency and product quality in local industries.
Akpabio further noted that the law would attract both local and foreign investment in domestic processing capacity, shield local manufacturers from unfair competition, and reduce Nigeria’s dependence on imported raw materials.
The bill now awaits concurrence from the House of Representatives and presidential assent before becoming law.
