The Federal Government has unveiled a bold new industrial policy. It aims to reshape Nigeria’s economic landscape.
Minister of Innovation, Science and Technology, Kingsley Udeh, announced the plan on Friday. The government will enforce a mandatory 30 percent value-addition on all raw materials before they can be exported.
The Minister described the initiative as a significant step. It was outlined during a press briefing in Abuja following a National Advocacy and Sensitisation Conference.
A New Law Awaits Presidential Assent
The policy is anchored on the Raw Materials Research and Development Council (RMRDC) Bill. This bill has been passed and is currently awaiting President Bola Tinubu’s signature.
According to Udeh, the legislation prohibits the export of raw natural resources. It requires significant domestic processing first.
“Before any of our natural wealth is exported, at least 30 percent value will be added,” Udeh stated.
From “Pit to Port” to Local Processing
The Minister used the mining sector to illustrate the shift. Currently, minerals like lithium are shipped out in their “rawest form.” This practice exports jobs and wealth abroad.
Under the new regime, companies must process these minerals locally. They must produce intermediate products like lithium concentrate or salt within Nigeria.
“That is employment,” Udeh emphasized. “That is an increase in capacity.”
He also pointed to agriculture. He lamented the cycle where Nigeria exports cocoa beans only to import expensive chocolate. The new law aims to break this dependency. Consequently, it transforms the nation from import-dependent to export-capable.
Attracting Investors
The Minister addressed fears regarding foreign capital. Some worry the strict requirements might drive away investors. However, Udeh argued the opposite.
He insisted that the law provides regulatory certainty.
“It will not scare investors. It will rather attract them,” Udeh asserted.
Foreign companies exporting resources like coal and steel must now establish local processing plants. This ensures that while investors profit, Nigeria gains critical infrastructure and employment.
“Two Mighty Pillars”
The Director-General of the RMRDC, Nnanyelugo Ike-Muonso, reinforced the bill’s importance. He explained that the legislation rests on two “mighty pillars.”
- Export Ban: No raw material leaves the country without 30% value addition.
- Import Restriction: Raw materials that are abundant within Nigeria must not be imported.
Ike-Muonso described the bill as a declaration of economic independence. He urged stakeholders to begin preparing for compliance immediately.
Implementation and Sanctions
To ensure compliance, the government is developing a national dashboard. This tool will track raw materials across sectors.
The Minister warned that violations would attract economic sanctions. These penalties are designed to dissuade players from bypassing the law.
Furthermore, financial support is being mobilized. The National Bank is reportedly preparing financing packages. This will help industries upgrade their capacity to meet the new standards.
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