The “Raw Materials Research and Development Council (Amendment) Bill, 2024” (SB.606) has successfully passed its first reading in the Nigerian Senate, aiming to amend the existing Raw Materials Research and Development Council Act of 2022.
The bill seeks to enhance the council’s capacity to promote local industrial growth while reducing Nigeria’s dependence on imported materials. The Bill is sponsored by Senator Onyekachi Nwebonyi. He represents the Ebonyi North Senatorial District. Bill progress: Committee stage.
The primary objective of the amendment is to mandate value addition to raw materials prior to export. Specifically, the bill proposes that no raw materials be exported from Nigeria without undergoing a minimum of 30% processing within the country. This strategic initiative is intended to achieve several goals:
- Protect Local Industries: By limiting the export of unprocessed raw materials, the bill aims to shield Nigerian industries from foreign competition and foster domestic production.
- Create Employment: The requirement for local processing is expected to stimulate job creation by promoting the expansion of value-added industries and supporting new business ventures.
- Boost Economic Growth: The legislation aims to transition Nigeria from being a raw material exporter to becoming a producer of finished and semi-finished goods, thereby facilitating economic diversification and increasing national revenue.
- Promote Technology: Encouraging local processing will drive the adoption of modern technologies and advanced manufacturing techniques, ultimately improving product quality and efficiency.
The bill has made significant strides within the legislative process. If passed, the amendments are expected to significantly bolster Nigeria’s industrial capacity and contribute to economic advancement.
