The House of Representatives has passed the Raw Materials Research and Development Council (RMRDC) Amendment Bill, which mandates a minimum of 30 per cent value addition to raw materials before export.
The bill, titled “A Bill for an Act to Amend the Raw Materials Research and Development Council Act, No. 28, 2022, to Provide for the Protection and Development of Nigeria’s Local Manufacturing and Processing Industries and for Related Matters (SB.606)”, scaled its third reading yesterday at the Green Chamber after consideration at the Committee of the Whole.
With its final passage by the House, the bill has now completed all legislative stages in the National Assembly and will soon be transmitted to President Bola Tinubu for assent.
The bill, which seeks to amend the RMRDC Act of 2022, was introduced in the House on Tuesday, July 22, 2025.
Popularly referred to as the ‘30 % Value Addition Bill,’ it proposes that no raw material shall be exported from Nigeria without undergoing at least 30 per cent value addition.
The amendment had earlier received overwhelming support in the Senate, where lawmakers described it as a strategic step toward reducing import dependence and strengthening Nigeria’s industrial base.
Lawmakers believe the bill would transform the national economy by boosting local manufacturing, creating jobs, reducing import dependence, and easing pressure on foreign exchange demand.
During the public hearing on the bill, the proposed legislation received overwhelming support from stakeholders.
Secretary-General of the Academic Staff Union of Research Institutes (ASURI), Professor Theophilus Ndubuaku, expressed concern over Nigeria’s long delay in prioritising value addition to its raw materials.
He lamented that the country remains largely an exporter of unprocessed resources with no strong base for finished products.
Director-General of the Nigerian Association of Small-Scale Industrialists (NASSI), Chris Oputa, lamented the immense economic losses Nigeria faces due to the lack of value addition to its raw materials, particularly in agriculture.
According to him, while other countries insist on processing their produce before export, Nigeria continues to miss out on significant revenue and job opportunities.
Head of Legal Services at the Nigerian Investment Promotion Commission (NIPC), Nancy Chukwura, affirmed the commission’s support for the proposed legislation, saying its provisions align with NIPC’s mandate to promote, encourage, and coordinate investments in Nigeria.
According to her, the act’s requirement for a 30 percent value addition to raw material exports would significantly boost investment opportunities in the country, adding that it would create a more attractive business environment, encouraging both domestic and foreign investors to establish industries in the country.
Elijah Nelson-Odofia, a Director at the National Environmental Standards and Regulations Enforcement Agency (NESREA), who spoke on behalf of the agency’s Director-General, Dr. Innocent Bariu, said the proposed legislation has the potential to drive industrial growth.
He, however, stressed the importance of integrating sustainability measures into the legislation to ensure that value addition to raw materials does not come at the cost of environmental degradation
Director-General of the RMRDC, Prof. Nnanyelugo Martin Ike-Muonso, also hailed the legislation as a landmark reform that will fortify Nigeria’s manufacturing sector and ensure sustainable economic development.
According to him, “the Bill will ensure that no raw material is exported without undergoing a minimum of 30 per cent processing locally. This will protect our natural resources, strengthen domestic production capacity, and retain more foreign exchange within the country.”
