A bill aimed at mandating the domestic processing of at least 30 percent of raw materials before export has successfully passed its second reading in the Senate.
Sponsored by Senator Nwebonyi Peter (APC, Ebonyi North), the bill seeks to amend the Raw Materials Research and Development Council Act 2022, with a focus on enhancing local processing and protecting domestic production.
During his lead debate on Tuesday, Senator Nwebonyi emphasized the bill’s potential to transform Nigeria’s economy. He argued that mandating local processing would strengthen the manufacturing sector, create job opportunities, and reduce reliance on imports and foreign exchange.
“Requiring at least 30 percent local processing will add value to our economy, particularly benefiting our Naira. It will also drive innovation within local industries, leading to a significant increase in domestic production,” he stated.
Senator Nwebonyi further pointed out that the bill, if passed, would protect Nigerian manufacturers by regulating the importation of raw materials that could be processed locally, thus creating a more favorable environment for domestic industries.
Despite widespread support, Deputy Senate Minority Leader, Senator Lere Oyewumi, raised concerns about the bill’s feasibility, particularly in sectors that lack the capacity for local processing.
“There needs to be room for amendments, considering the nature of some products. We cannot assume that all products can be processed locally—what happens when there are no companies capable of processing them?” he questioned.
Senator Oyewumi also warned that strict enforcement of the bill might negatively impact local farmers who rely on export markets for raw materials. “We must be cautious with blanket approvals, as farmers could face losses if their raw materials cannot be processed locally,” he cautioned.
After deliberations, Senate President Godswill Akpabio put the bill to a voice vote, with the majority of lawmakers voting in favor, allowing the bill to proceed to the next stage following its successful second reading.
