Mandatory local processing will unlock factories, jobs and industrial growth — Ike-Muonso
By Joy Omagha Idam
Nigeria’s natural resources must begin generating greater value at home rather than being exported largely in raw form, as the proposed 30 per cent mandatory value-addition law could fundamentally reshape the country’s approach to natural-resource exploitation, the Director-General of the Raw Materials Research and Development Council (RMRDC), Prof. Nnanyelugo Ike-Muonso, has said.
Ike-Muonso said the proposed legislation would make local processing a mandatory requirement for the export of raw materials, ensuring that resources extracted from Nigerian soil contribute directly to the country’s industrial development.
The RMRDC boss disclosed this while speaking on the potential impact of the bill, which has undergone amendments proposed by President Bola Ahmed Tinubu and subsequently returned to the National Assembly.
According to him, following the legislative process, the bill is expected to return to the President for assent, expressing optimism that it would be signed into law.
He described the proposed legislation as a significant instrument capable of unlocking Nigeria’s industrial potential by compelling greater investment in domestic processing and manufacturing.
Under the proposed law, at least 30 per cent value addition would be required before raw materials are exported. The policy is aimed at ensuring that Nigeria does not simply extract and ship its resources abroad, but processes a significant portion locally to create industries, jobs and additional economic opportunities.
“By saying you must, it means that every extraction must contribute to industrial growth of Nigeria,” Ike-Muonso said.
The RMRDC has previously identified the proposed legislation as an important measure for promoting local processing, strengthening manufacturing, creating employment and reducing Nigeria’s dependence on imported raw materials.
Ike-Muonso stressed that the principle should not be limited to minerals alone, but should cover agricultural commodities and other resources produced within the country.
He argued that even partial processing of products currently exported in their raw state could stimulate the establishment of new factories, open new markets, create employment and expand opportunities for Nigerian businesses.
LITHIUM, OTHER MINERALS HOLD HUGE POTENTIAL
Using lithium as an example, the RMRDC Director-General highlighted the enormous economic potential that could be unlocked when minerals are processed locally before export.
Rather than exporting minerals at their lowest commercial value, he said, Nigeria could capture substantially greater economic benefits by developing the capacity to process them into higher-value products.
The argument, he explained, is central to the broader push for Nigeria to move from an extraction-based economy towards an industrial economy driven by processing, manufacturing and innovation.
Beyond minerals, Ike-Muonso also called attention to the need for Nigerians to understand the raw-material resources available within their communities.
He identified inadequate knowledge of the country’s raw-material base as one of the factors contributing to Nigeria’s continued dependence on imported materials.
According to him, the RMRDC is therefore strengthening its data systems to identify, document and make information on Nigeria’s raw-material resources more accessible for economic planning, investment and industrial development.
The Council’s National Raw Material Information and Resource Assessment system is designed to provide data that can support investment decisions, policymaking and the development of industries around locally available resources.
CATCH THEM YOUNG
Ike-Muonso further argued that Nigeria’s value-addition agenda must extend beyond legislation and industrial policy to education.
He said young Nigerians need to be taught from an early age to recognise the economic and industrial potential of resources available within their communities.
To achieve this, he said the RMRDC is developing programmes targeted at secondary-school students, including educational portals and quiz competitions designed to improve awareness of raw materials and their industrial applications.
He maintained that creating a generation that understands the relationship between natural resources, technology, manufacturing and wealth creation would be critical to sustaining Nigeria’s industrial transformation.
AFRICA MUST RETAIN MORE VALUE
The RMRDC boss also broadened the argument to the African continent, stressing that Africa’s industrial transformation would depend on its ability to move beyond the extraction and export of raw materials.
Rather than allowing resources to leave the continent in their least-processed form and returning as expensive finished products, he said African countries must increasingly process their resources locally and develop industries around them.
Other speakers, including the summit’s Head of Secretariat, Rachael Kotso, and the Director, Directorate of Corporate Affairs, Chinyere Nnamdi-Anum, said the summit would provide a platform for policymakers, industry leaders, academics, researchers, manufacturers and entrepreneurs to examine strategies for enabling Africa to retain more value from its natural resources.
The proposed 30 per cent value-addition requirement, if enacted, would therefore place greater emphasis on the transformation of Nigeria’s abundant raw materials into products capable of supporting domestic industries, creating employment and expanding the country’s industrial base.