Breaking: Senate Passes Landmark Bill To Boost Local Processing Of Raw Materials In Nigeria.
The Nigerian Senate has passed a groundbreaking bill requiring that all raw materials undergo at least 30 percent local processing before being exported from the country. The legislation, which amends the Raw Materials Research and Development Council Act 2022, marks a significant step towards enhancing Nigeria’s manufacturing sector and reducing reliance on imported goods.
Sponsored by Senator Onyekachi Nwebonyi, representing Ebonyi North, the bill aims to promote value addition, stimulate job creation, and bolster the nation’s economy. It mandates that exporters ensure a minimum of 30 percent processing of raw materials, with penalties for non-compliance, including a 15 percent levy on the export value and potential suspension of export certificates. The Raw Materials Research and Development Council (RMRDC) will issue guidelines to define the processing standards, ensuring quality, safety, and environmental sustainability are met.
Senate President Godswill Akpabio hailed the bill as a pivotal move towards industrialisation, stating it would curb the export of unprocessed resources and foster local industry growth. “This legislation will create jobs, reduce our dependence on imports, and position Nigeria as a leader in value-added exports across Africa,” he said during the plenary session. He further noted that the bill would encourage the adoption of modern technologies to enhance efficiency in local manufacturing.
The legislation has garnered widespread support from industry stakeholders, including the Manufacturers Association of Nigeria and the Standards Organisation of Nigeria, who see it as a catalyst for economic transformation. Experts estimate the policy could create millions of jobs within a decade, particularly in agro-processing, and significantly strengthen the naira by reducing demand for foreign exchange.
However, concerns have been raised about the capacity of local industries to meet the processing requirements. Senator Olalere Oyewumi, representing Osun West, cautioned that sectors like cocoa, where less than 10 percent is processed locally, could face challenges without sufficient infrastructure. He urged a gradual implementation to avoid disrupting farmers reliant on raw material exports.
The bill, which passed its third reading on 2 July 2025, is now awaiting concurrence from the House of Representatives and presidential assent. If signed into law, it could reshape Nigeria’s economic landscape, driving sustainable growth and positioning the country as a hub for processed goods in Africa.
