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30% Value Addition Bill Will Force Local Processing, Drive Industrial Growth — RMRDC DG
By Iyojo Ameh
The proposed 30 per cent mandatory value-addition law will compel producers to process more of Nigeria’s raw materials locally before export, the Director-General of the Raw Materials Research and Development Council (RMRDC), Prof. Nnanyelugo Ike-Muonso, has said.
Ike-Muonso said the legislation, which has undergone amendments proposed by President Bola Tinubu and returned to the National Assembly, would be transmitted to the President for assent after completing the legislative process.
He expressed optimism that Tinubu would assent to the bill, describing it as a critical instrument for transforming Nigeria’s resource wealth into sustainable industrial growth, jobs and investment.
Under the proposed legislation, Ike-Muonso said, at least 30 per cent value would have to be added to raw materials before they are exported. He said the requirement would ensure that the extraction of resources from Nigerian soil contributes directly to the development of industries within the country.
“By saying you must, it means that every extraction must contribute to industrial growth of Nigeria,” he said.
The RMRDC boss said the principle would cover minerals, agricultural commodities and other raw materials, adding that processing even a fraction of what Nigeria currently exports in its raw form could stimulate new markets, factories and employment opportunities.
He cited lithium as an example, noting that processing the mineral locally before export could substantially increase its commercial value while creating opportunities for businesses along the production chain.
Ike-Muonso also identified inadequate knowledge of Nigeria’s raw-material resources as a major challenge to industrial development and import substitution.
He said the RMRDC was strengthening its data systems to provide reliable information on raw materials available across the country and support investment, policymaking and industrial planning.
According to him, the Council’s National Raw Material Information and Resource Assessment system is designed to provide relevant data on the country’s resources and guide investors and policymakers.
He added that the value-addition agenda must also involve young Nigerians, particularly through education and awareness programmes that would help them understand the economic potential of resources found in their communities.
Ike-Muonso said the RMRDC was developing initiatives for secondary-school students, including educational portals and quiz competitions, to expose them to raw materials and their industrial applications.
He maintained that Africa’s industrial transformation would depend on moving away from exporting unprocessed resources and towards processing them into higher-value products before they leave the continent.
The summit’s Head of Secretariat, Rachael Kotso, and Director of Corporate Affairs, Chinyere Nnamdi-Anum, said the event would bring together policymakers, industry leaders, academics, researchers, manufacturers and entrepreneurs to explore ways of enabling Africa to retain more economic value from its natural resources.