The Minister of Innovation, Science and Technology, Dr Kingsley Tochukwu Udeh (SAN), has doused possible fears that the RMRDC 30% Value Addition Bill may scare away foreign investors and contravene free trade agreements.

The Bill, which was sponsored by Senator Onyekachi Nwebonyi, representing Ebonyi North Senatorial District, and currently awaiting Presidential assent, is aimed at amending the Raw Materials Research and Development Council (RMRDC) Act to ensure that at least 30 per cent of raw materials are processed locally before being exported.

Speaking yesterday in Abuja at the national advocacy and sensitisation programme held on the benefits of the Bill, the Minister described it as an incentive to expand the Nigerian market and economy, noting that when signed into law, it will give confidence to investors and encourage value changing across all products and raw materials.

“And these investors will want to come and invest in supporting infrastructure and services, and will also want to invest in value addition itself,” he said.

The RMRDC 30% Value-Addition Bill was designed to restrict the importation of any raw material that is readily available in Nigeria. This was to shift the nation away from being a mere exporter of raw materials to becoming a hub for processing and manufacturing.

“We are only saying that we are going to add value, at least 30 per cent, so that whatever is going out from Nigeria has valu,e and this is even in the interest of other countries and investors that these raw materials are exported.”

The Minister noted that the law will be a possible legal transcript with far-reaching impact, not only in the manufacturing sector but across all sectors, as it will expand the economy through the expansion of production capacity and job opportunities.

“It will increase our GDP, increase the balance of trade and, of course, our dignity and sovereignty as a nation. With this law, we can begin to talk about adding value to our raw materials. And of course, we know that to add that value, there will be Nigerians doing that in Nigeria; that is employment, increase in capacity and establishment of infrastructure that will enable the transformation of the raw materials.”

In his remarks, the Director-General, RMRDC, Prof. Nnanyelugo Ike-Muonso, said he recognised early on assumption of office that Nigeria’s industrialisation was intrinsically tied to the utilisation of at least 80 per cent of the country’s domestic natural resources in manufacturing.

To achieve this, he noted it became imperative that programmes that aggressively add value to the locally available raw materials were pursued.

“We needed a framework that ensures the achievement of the import substitution agenda while simultaneously strengthening Nigeria’s productivity, boosting employment prospects and securing our overall economic prosperity.”

To inoculate the vision against risks, especially policy failure, the D.G. said a legislative route was considered, and by codifying the agenda into law, the risk of policy reversals was curtailed while ensuring that Nigerians and international partners are “locked in” to the value-addition agenda.

“Consequently, our concern shifts from the volatility of political will to the efficiency and effectiveness of the justice system. Once this Bill is assented to, compliance becomes a matter of law, not convenience.”

The D.G. added that the Bill stands on two pillars – export constraint and import prohibition pillars. While the former insists that no raw material shall be exported from Nigeria without a minimum of 30 per cent local value addition, the latter mandates that no raw material considered abundant within Nigeria should be imported.

“We can no longer afford to export jobs and wealth by shipping out agricultural produce and solid minerals at peanuts only to buy back finished goods at a premium.

“Also, if we have it here, we must process it here. This Bill is the bedrock of our future industrialisation. It is the catalyst that will transform us from a consumption-based economy to a production powerhouse,” the D.G. said.