CHUKWU DAVID reports on how Senator Onyekachi Nwebonyi was able to convince the Senate to process a bill seeking to amend the Raw Materials Research and Development Council (RMRDC) Act 2022, in order to end exportation of raw materials from Nigeria and also strengthen the country’s local industries for economic survival, and improved productivity
Tuesday, December 10, 2024, will remain memorable for stakeholders in the Raw Materials Research and Development Council and other Nigerians as it was the day the senator representing Ebonyi North Senatorial District, Onyekachi Nwebonyi, convincingly persuaded the Senate to pass for second reading, a bill to amend the council’s Act.
The bill, which aims to amend the Raw Materials Research and Development Council Act, 2022, and introduce provisions for local processing and production protection, received the approval of the Senate to be read the second time, and then referred to the Senate Committee on Science and Technology for further legislative input.
Senator Nwebonyi, while leading debate on the bill during plenary session, argued that protecting local processing will boost local manufacturing industries, create jobs for Nigerians, reduce dependence on imports and demand for foreign exchange. He added that the legislation intends to ensure local processing of at least 30 per cent raw of materials before export.
According to the senator, the bill will also regulate importation of raw materials that could have been processed locally, thereby boosting competitiveness and creating a favourable environment for local industries to flourish.
“Promoting local processing to a minimum of 30 per cent or more will add value to our economy. It will also encourage innovation within local industries, leading to a significant in crease in domestic production.
“The Local Raw Materials Protection draft legislative bill, is imperative for fostering Nigeria’s industrial growth and development through value addition locally. The bill seeks to amend the RMRDC Act 2022 to prioritize domestic production and local manufacturing,” he said.
Senator Nwebonyi added that the bill, if enacted, will shield Nigerian manufacturers from foreign competition by regulating the importation of raw materials that could be processed locally, fostering a favourable business environment for domestic industries to thrive.
His words: “This bill before us; the Raw Materials Processing and Local Production Protection Bill, aims to strengthen our local industries by ensuring access to raw materials, fostering economic development and enhancing our self-sufficiency. “This bill if enacted into law will have a lot of positive impacts on Nigeriam which include economic growth and job creation.
By securing access to raw materials, we empower local manufacturers to operate efficiently, thus supporting job creation and economic growth within our communities. “Encouraging innovation: with local access to raw materials, companies can experiment and innovate, leading to advancements in technology and products , ultimately benefiting consumers.
“Reduction of imports: Reduction on our reliance on imported raw materials can help stabilize our economy during global supply chain disruptions. And, by bolstering local production, we can improve our trade balance and potentially export surplus goods.
“Processing raw materials locally can lead to more sustainable practices, as transportation emissions are reduced, Also, encouraging the local processing of raw materials promotes a circular economy, minimizing waste and fostering recycling and reuse.
“By investing in local industries, we directly empower communities, improving livelihoods and ensuring the economic benefits stay within the region. This will also engage the youths minimize insecurity and banditry.”
Nwebonyi concluded by saying: that in the light of the prevailing economic condition in Nigeria, we must recognize that local processing of our raw materials and promotion of local production are not merely an economic necessity but also a pathway toward national pride and self-sufficiency.
This bill offers the framework needed to revitalize these sectors and create a dynamic and resilient economy. In his contribution, the Deputy President of the Senate, Jibrin Barau, commended Senator Nwebonyi for his thoughts and innovation towards reenergizing the nation’s economy.
He lamented that “day in and day out, raw materials are exported out of this country to develop other economies. “We have the capacity, human capital, and technical resources to act on these raw materials and to process these raw materials.
And by not doing so, we are undermining our economy while allowing for the promotion of other economies. “Once this bill is passed, it will now be mandatory that these raw materials be processed here, at least 30 per cent. This will energise our economy by providing jobs and promoting our real sector.
Our real sector will be energised; we will go up and running. It’s very straightforward. “Several industries will emerge because it will now be mandatory that you don’t engage in this lazy attitude of taking raw materials outside the shores of this country. This raw material must be processed here,” he explained.
The Deputy Senate Minority Leader, Senator Kamorudeen Oyewumi (PDP Osun West), however, raised concerns about the bill’s practicality, particularly in sectors lacking local processing capacity. He said: “There is a need for amendments due to the nature of some products. We assume that all these products should not be exported raw, but what about when there are no companies to process them locally?”
While warning that strict enforcement of the bill could harm local farmers who rely on export markets for raw materials, he advised against granting blanket approval, “as farmers may incur losses if raw materials cannot be processed locally.” The President of the Senate, Godswill Akpabio, after the bill scaled second reading, referred it to the Committee on Science and Technology, and mandated to report back within four weeks.
In a chat with journalists, the Director General and Chief Executive officer RMRDC, Prof. Nnanyelugo Martin Ike-Muonso, noted that the bill seeks to fortify Nigeria’s local manufacturing sector, reduce dependency on imports and ensure sustainable economic development, through the promotion of local processing and value addition to the nation’s raw materials resources.
He further noted that when passed, the bill ensure that no raw materials are exported without undergoing a minimum of 30 per cent processing locally, adding that this significant stride in national raw materials and manufacturing policy reform will provide Nigerians with more forex for raw materials sourcing, protect natural resources and catalyse domestic processing capabilities in the country
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