The Nigerian Senate has passed a bill requiring that all raw materials undergo a minimum of 30 percent local processing before they can be exported from the country.
This development followed the Senate’s adoption of the report presented by the Committee on Science and Technology, which reviewed the amendment of the Raw Materials Research and Development Council Act, 2022.
Sponsored by Senator Onyekachi Nwebonyi, who represents Ebonyi North, the bill is designed to promote value addition, strengthen the local manufacturing sector, reduce Nigeria’s reliance on imports, and support long-term economic sustainability.
Under the newly passed provisions, exporters who fail to meet the 30 percent local processing threshold will face a 15 percent levy based on the export value of the raw materials. In addition, such exporters risk suspension or revocation of their raw material value addition certificates.
The degree of processing will be assessed based on factors including the characteristics of the material, the technology used, and the export market’s requirements. The Raw Materials Research and Development Council will issue comprehensive guidelines outlining what constitutes 30 percent processing. These will include benchmarks for quality assurance, safety standards, and environmental sustainability criteria.
Raw materials that are exported without meeting the mandated processing level will be treated as “smuggled goods” and sanctioned in accordance with existing customs and trade regulations.
The legislation also aims to reduce the volume of raw materials being imported into the country, especially those that can be sourced or processed locally, thereby encouraging the growth of domestic industries.
Reacting to the bill’s passage, Senate President Godswill Akpabio described the amendment as a major achievement for Nigeria’s industrialisation agenda.
“This bill is expected to create job opportunities, boost Nigeria’s trade competitiveness globally, and promote responsible management of the country’s natural resources. It will increase capacity to reduce reliance on totally imported raw materials, promote sustainable resource management, environmental protection through the adoption of best practices in the utilisation of locally sourced raw materials, and in addition, it will reduce carbon footprints.
“This will support the adoption of advanced processing technologies in local industries to improve efficiency and product quality,” he said.
Akpabio further stated that the legislation would help curb the importation of raw materials that are already available domestically, protect local manufacturers from unfair foreign competition, and stimulate investments aimed at enhancing Nigeria’s industrial processing capabilities.
He noted that it would also drive the adoption of modern processing technologies, ultimately improving the efficiency and quality of local production, while attracting both local and foreign investors to the country’s raw material value chain.
