The Nigerian Senate has unanimously passed the second reading of a groundbreaking bill requiring the local processing of at least 30% of raw materials before they are exported. Sponsored by Senator Nwebonyi Peter (APC, Ebonyi North), the bill seeks to amend the Raw Materials Research and Development Council Act of 2022, with a focus on bolstering domestic production and protecting local industries.
A Vision for Economic Transformation
During the plenary session on Tuesday, Senator Nwebonyi passionately championed the bill, outlining its potential to revolutionize Nigeria’s economy. He highlighted that the bill’s passage would boost local manufacturing, create jobs, reduce the nation’s reliance on imports, and ease pressure on foreign exchange reserves.
“This bill is a crucial step towards protecting our local manufacturers from foreign competition by regulating the importation of raw materials that can be processed within Nigeria,” Senator Nwebonyi said. “By mandating that at least 30% of raw materials be processed locally, we will significantly add value to our economy, particularly to our Naira. This will also drive innovation in our local industries, enhancing domestic production.”
Concerns Raised by Senator Oyewumi
While the bill garnered widespread support, Senator Lere Oyewumi, the Deputy Senate Minority Leader, voiced concerns about its practicality, particularly in sectors lacking the capacity for local processing. He cautioned that strict enforcement of the bill could have unintended consequences for farmers who rely on export markets. Senator Oyewumi warned that raw materials left unprocessed could result in financial losses for farmers, jeopardizing their livelihoods.
Impact on Local Industries
Despite the concerns, the bill’s supporters argue that local processing will foster economic self-sufficiency, reduce unemployment, and drive sustainable growth in Nigeria’s industrial sector. If passed into law, this bill could create a ripple effect across multiple industries, from agriculture to manufacturing, enhancing value-added products and reducing Nigeria’s dependence on foreign goods.