Nigeria Eyes Ban on Raw Material Imports to Boost Local Sourcing and Industrial Growth

The Raw Materials Research and Development Council (RMRDC) is advancing a plan to tighten Nigeria’s borders against imports of raw materials that could be sourced locally, marking a bold policy push toward industrial self-reliance. The initiative, in collaboration with lawmakers, is moving through the National Assembly with an initial bill that has already passed its first reading.

Announcing the plan in Lagos at an interactive session with the Manufacturers Association of Nigeria (MAN), Professor Nnanyelugo Ike-Muonso, the Director-General of RMRDC, described the policy shift as “transformative.” He highlighted the bill’s requirement that 30% value be added to all raw materials before export, aiming to retain foreign exchange, safeguard natural resources, and build up Nigeria’s local processing industry.

“This bill represents a pivotal policy reform,” said Ike-Muonso. “By mandating 30% value addition, we aim to protect our resources, stimulate job creation, and propel Nigeria’s industrial growth. With support from MAN’s sectoral data, we expect the bill to progress smoothly and to see significant impact in the coming years.”

The proposed 30% requirement is informed by data from MAN’s ten sectoral groups, which the RMRDC’s Multi-disciplinary Task Force (MTF) has meticulously analyzed. The MTF study identifies sectors that require enhanced processing capabilities and provides targeted support recommendations. “The task force’s insights show where specific technological and capacity-building investments are needed to meet the new standard,” Ike-Muonso said, explaining that RMRDC would implement sector-specific support measures to ensure manufacturers can meet this threshold.

MAN’s Director-General, Segun Ajayi-Kadir, commended the initiative, describing the partnership as a landmark opportunity to deepen collaboration between RMRDC and manufacturers. He highlighted the RMRDC’s inclusive approach in forming a strategic plan as a model for effective industrial development.

“This initiative signals an exciting chapter for Nigeria’s raw material development, enhancing local utilisation and productivity,” Ajayi-Kadir stated. He added that MAN sees this legislation as a way to improve the global competitiveness of made-in-Nigeria products and strengthen national production lines.