Nigeria's Raw Materials Research and Development Council is working with lawmakers to pass legislation restricting the importation of raw materials that can be produced locally.

The law, which has already passed its first reading in the National Assembly, seeks to promote local production while reducing dependency on imports.

Prof. Nnanyelugo Ike-Muonso, Director-General and CEO of RMRDC, announced this during a one-day interactive session with the Manufacturers Association of Nigeria on Thursday in Lagos.

Ike-Muonso remarked that if the law is passed, it will contribute to Nigeria's foreign exchange reserves by lowering the need to purchase raw materials. It will also protect the country's natural resources and encourage the expansion of domestic processing businesses, resulting in increased local manufacturing and economic development.

He stated, "Today, I am thrilled to announce some ground-breaking projects that will significantly complement and strengthen the effectiveness of the MTF, establishing Nigeria as a pioneer in industrial innovation and self-reliance.

"First, we are taking substantial steps towards policy reform by presenting a revolutionary bill in the National Assembly. This regulation will require a minimum of 30% value addition for all raw materials before export. This brave measure will safeguard our natural resources while also boosting local processing capacity, so creating jobs and promoting industrial growth. This law has already passed the first reading, and we expect it to pass the second reading, hopefully next week."

The RMRDC head noted that the council arrived at the 30% value addition criterion on raw materials before export after conducting a study and collecting data from MAN's 10 sectoral groupings.

"The Multi-disciplinary Task Force's comprehensive survey and data collecting throughout the ten sectoral groupings of MAN lays the groundwork for achieving the 30% value addition requirement on raw materials before export. Through its extensive mapping of industrial capabilities, processing facilities, and technology gaps, the MTF identifies areas that require value-added capability enhancement and delivers actionable recommendations for enterprises looking to upgrade their processing capacities.

"The task force's results assist in determining which areas require targeted support, technology intervention, or capacity building to meet the 30% barrier. Furthermore, by documenting current value-addition practices and potential across various industries, the MTF allows RMRDC to develop sector-specific strategies and support mechanisms to assist manufacturers in meeting this new export requirement while increasing their competitiveness in global markets. This methodical approach assures that the 30% value addition strategy is more than simply an aspiration; it is an attainable goal supported by data-driven insights and practical execution tactics," Ike-Muonso added.

Earlier in the session, Segun Ajayi-Kadir, Director-General of the Manufacturers Association of Nigeria (MAN), described the conference as an opportunity to "explore partnerships to implement an international project aimed at increasing patronage of made-in-Nigeria products."

"The second arises from the fact that it is a first of its kind: RMRDC's leadership is making the process of developing the Council's strategic plan and activities more inclusive. The third is that it represents another opportunity to strengthen the existing relationship/collaboration between MAN and RMRDC, as it has immense potential for increasing productivity, raw material development, and utilisation in Nigeria."