Senate passes bill seeking raw materials processing before export

The Senate has passed the second reading of a bill requiring the local processing of at least 30% of raw materials before export.

The bill, sponsored by Senator Nwebonyi Peter (APC, Ebonyi North), seeks to amend the Raw Materials Research and Development Council Act 2022 to prioritise domestic production and protect local industries.

During the plenary session on Tuesday, Senator Nwebonyi argued that the bill would transform Nigeria’s economy by boosting local manufacturing, creating jobs, reducing import dependency, and easing pressure on foreign exchange demand.

He stated that if passed, the bill would protect Nigerian manufacturers from foreign competition by regulating the importation of raw materials that could be processed locally, thereby creating a favourable environment for domestic industries to flourish.

“Promoting local processing to a minimum of 30 per cent or more will add value to our economy, particularly to our Naira. It will also encourage innovation within our local industries, leading to a significant increase in domestic production,” Nwebonyi said.

Concerns were raised by Deputy Senate Minority Leader, Sen. Lere Oyewumi, who questioned the bill’s practicality, particularly in sectors lacking the capacity for local processing.

Oyewumi warned that strict enforcement could harm farmers relying on export markets and lead to financial losses if raw materials remain unprocessed.

“There is a need for amendments due to the nature of some products. We assume that all these products should not be exported raw, but what about when there are no companies to process them locally?” Oyewumi said. “We should avoid granting blanket approval, as farmers may incur losses if raw materials cannot be processed locally.”

However, Senate President Godswill Akpabio held a voice vote, with the majority of senators voting in favour of the bill.