The Nigerian Senate has passed a landmark amendment requiring all locally produced raw materials to undergo at least 30% domestic processing before they are exported. The bill, an amendment to the Raw Materials Research and Development Council Act of 2022, was adopted following the Senate Committee on Science and Technology’s report and aims to stimulate value addition, bolster manufacturing, and reduce import dependence.
Originating from Senator Onyekachi Nwebonyi (Ebonyi North), the legislation sets clear consequences for non-compliance: exporters who fail to meet the threshold will face a 15% levy on export value, and repeated infractions may lead to suspension or revocation of their processing certificates. The Raw Materials Research and Development Council (RMRDC) will issue detailed guidelines on how to calculate and verify the 30% value addition, while customs authorities will tighten monitoring to ensure adherence.
Senate President Godswill Akpabio described the measure as “a game changer” for Nigeria’s industrialisation drive, projecting that it will generate employment, attract investment, and combat carbon emissions by promoting local production. However, some stakeholders, including the Centre for the Promotion of Private Enterprise, have urged caution, warning the policy could strain exporters lacking sufficient processing capacity.
