The Minister of Innovation, Science and Technology, Dr Kingsley Tochukwu Udeh (SAN), has moved to allay concerns that the proposed Raw Materials Research and Development Council (RMRDC) 30% Value Addition Bill could deter foreign investment or breach international trade agreements.
Bill Aims to Transform Nigeria's Economic Base
Speaking at a national advocacy programme in Abuja on December 1, 2025, the Minister described the pending legislation as a major incentive designed to expand the Nigerian market and economy. The Bill, sponsored by Senator Onyekachi Nwebonyi of Ebonyi North Senatorial District, seeks to amend the RMRDC Act. Its core mandate is to ensure that a minimum of 30 per cent of raw materials are processed locally before being exported from Nigeria.
Dr Udeh argued that the law, once signed by the President, would actually give confidence to investors rather than scare them away. “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 stated. The Minister emphasised that the policy is in the interest of both Nigeria and its international partners, as it ensures exported goods carry higher value.
A Legislative Framework for Sustainable Industrialisation
The Director-General of the RMRDC, Professor Nnanyelugo Ike-Muonso, provided further insight into the rationale behind the Bill. He explained that upon assuming office, he recognised Nigeria's industrialisation is intrinsically linked to utilising at least 80 per cent of domestic natural resources in manufacturing. To lock in this agenda and shield it from policy reversals, a legislative approach was deemed essential.
“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 DG stated. He outlined that the Bill rests on two key pillars:
- Export Constraint: No raw material shall be exported without a minimum of 30% local value addition.
- Import Prohibition: No raw material considered abundant in Nigeria should be imported.
Professor Ike-Muonso was unequivocal about the economic imperative, stating, “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.” He labelled the Bill the bedrock of Nigeria's future industrialisation and the catalyst to transition from a consumption-based economy to a production powerhouse.
Projected Impact on Economy and Employment
Minister Udeh highlighted the far-reaching impact the law is expected to have across all sectors of the economy. He projected significant benefits including:
- Expansion of production capacity and creation of job opportunities for Nigerians.
- An increase in Nigeria's Gross Domestic Product (GDP).
- Improvement in the nation's balance of trade.
- Enhancement of national dignity and economic sovereignty.
“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,” the Minister concluded. The Bill now awaits Presidential assent to become law and set this new industrialisation phase in motion.
