Legislation aimed at safeguarding local manufacturers clears first reading in the Senate
Written by Agboola Oluwafemi on October 21, 2024
A draft legislative bill aimed at bolstering Nigeria’s raw materials processing and fostering local production has successfully passed its first reading in the Senate.
In a statement, the Director of Corporate Affairs for the Raw Materials Research and Development Council (RMRDC), Mr. Chuks Ngaha, emphasized that if enacted, the bill would serve as a crucial catalyst for Nigeria’s industrial advancement and economic growth. Sponsored by Senator Peter Nwebonyi (Ebonyi North), the proposed legislation seeks to enhance the country’s manufacturing sector, reduce reliance on imported goods, and stimulate sustainable economic development by promoting domestic processing and value addition to Nigeria’s raw materials.
The bill advocates for a policy where no raw materials are exported without first undergoing a minimum of 30% processing within Nigeria, a measure intended to foster value creation locally. It also aims to protect local industries by prohibiting the importation of raw materials that can be sourced or produced domestically, thereby shielding Nigerian manufacturers from unfair competition and encouraging the growth of local industry.
“The objective is to ensure that no raw materials are exported from Nigeria without undergoing a minimum of 30% processing and to prohibit the importation of raw materials available for local production,” the statement highlighted.
Additionally, the bill stipulates that raw materials must receive certification from the Council, confirming they have undergone the necessary level of processing before export. Furthermore, it empowers the Federal Ministry of Trade and Investment, in consultation with RMRDC, to compile and regularly update a list of locally available raw materials to ensure their optimal use in domestic production, subject to periodic review.
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Author: Agboola Oluwafemi
Marketing Expert
