By Julian Osamoto
Nigeria could soon require exporters to process raw materials locally before shipment as the Raw Materials Research and Development Council (RMRDC) pushes legislation aimed at ending decades of exporting unprocessed commodities.
The Council says the proposed law, which requires exporters to add at least 30 per cent value to raw materials before export, will drive industrialisation, create jobs, attract investment and increase foreign exchange earnings.
Director-General of RMRDC, Professor Nnanyelugo Martin Ike-Muonso, disclosed this during Voice of Nigeria’s In the News programme in Abuja.
He said the Council drafted the bill shortly after he assumed office, adding that the National Assembly, the Federal Ministry of Justice and the Presidency are considering the proposal.
> “Eventually, it will become law, meaning that raw materials cannot be exported from Nigeria without value being added to them. This will lay the foundation for industrialisation because local processing will be significantly expanded,” he said.
Professor Ike-Muonso said the legislation would transform Nigeria from a supplier of raw materials into a producer of value-added products.
He explained that exporters would no longer ship commodities such as cocoa in their raw form but would process them locally before export.
According to him, the policy aligns with President Bola Tinubu’s drive to industrialise the economy and end the practice of exporting raw resources only to import finished products at much higher prices.
The Director-General said the proposed law would encourage investors who currently process Nigerian raw materials abroad to establish factories in Nigeria.
He said local processing would promote technology transfer, strengthen manufacturing, reduce imports, create jobs and improve the country’s foreign exchange earnings.
Professor Ike-Muonso added that the bill would also restrict the importation of raw materials that Nigeria already produces in commercial quantities, guaranteeing supplies for local industries and supporting domestic manufacturing.
Using oranges as an example, he said rural processing clusters could enable local communities, particularly women, to produce orange concentrate for export instead of selling fresh fruit.
He said such processing would exceed the proposed 30 per cent value-addition threshold while generating employment, expanding technology and increasing export earnings.
Professor Ike-Muonso argued that Nigeria must end a system that allows other countries to earn more from its natural resources than the country itself.
> “Today, different countries have effectively partitioned Africa’s raw materials. Vietnam processes our cashew, India processes our cocoa, while China processes our lithium and rare earth minerals.
> “This mirrors the colonial economic structure. Until we change that narrative, we will continue to lose the full value of our resources,” he said.
To support the proposed reforms, Professor Ike-Muonso said RMRDC has strengthened its institutional capacity through management reforms, digitalisation and research.
He said the Council upgraded its management systems and earned the ISO 9001:2015 Quality Management System certification after meeting international quality standards.
The Director-General also unveiled the second-generation Nigerian Information and Statistical System for Raw Materials and Products.
He said the platform connects 41 databases and gives investors, manufacturers and policymakers free access to information on raw materials, processing technologies and investment opportunities.
Professor Ike-Muonso said RMRDC currently holds about 47 patented innovations, nearly 600 research outcomes ready for commercialisation and more than 70 locally designed processing machines.
He added that the Council has strengthened collaboration with the Manufacturers Association of Nigeria and signed Memoranda of Understanding with 46 universities to commercialise research and bridge the gap between academia and industry.
To deepen research and innovation, the Council also launched the Journal of Raw Materials Research.
Professor Ike-Muonso said the journal will publish peer-reviewed studies on raw materials development, manufacturing, materials science, environmental sustainability, the circular economy, industrial competitiveness and supply chain management.
He said the publication will uphold international standards of editorial independence, rigorous peer review, research integrity and ethical publishing while promoting collaboration among researchers, industry, policymakers and development partners.
The journal will also document research findings, processing technologies, industrial applications and value-addition opportunities across Nigeria’s raw materials sector.
Professor Ike-Muonso said RMRDC has expanded collaboration with state governments and international partners to accelerate industrial development.
He disclosed that the Council is working with the Benue State Government, while the World Export Trade Organisation has pledged to provide technologies to support raw material processing and research.
Although he commended President Bola Tinubu for increasing support for the Council, Professor Ike-Muonso said government funding still falls short of the level required by law.
> “Like Oliver Twist, we continue to ask for more because we are still far from where we should be. We currently receive less than 10 per cent of the funding provided for under the law,” he said.
Professor Ike-Muonso expressed confidence that the proposed legislation would transform Nigeria’s industrial sector and inspire other African countries to process more of their natural resources locally instead of exporting them in raw form.
