By Nathaniel Zacchaeus, Abuja
Senators in plenary yesterday passed, for a second reading, a bill mandating the local processing of at least 30 percent of raw materials in the country before exportation.
The bill aims to amend the Raw Materials Research and Development Council Act 2022 and introduce local processing and production protection provisions.
It was sponsored by Senator Peter Nwebonyi (APC Ebonyi North).
Nwebonyi, who led the debate on the bill at yesterday’s plenary, argued that mandating local processing would boost local manufacturing industries, create jobs for Nigerians, reduce dependence on imports, and reduce the demand for foreign exchange.
He said, “Promoting local processing to a minimum of 30 percent or more will add value to our economy, particularly our naira. It encourages innovation within our local industries, significantly increasing domestic production.”
Nwebonyi added that the bill, if enacted, would shield Nigerian manufacturers from foreign competition by regulating the importation of raw materials that could be processed locally, fostering a favourable environment for domestic industries to thrive.
In his contribution, the Deputy President of the Senate, Jibrin Barau, said the proposed legislation was an innovation that would help establish and re-energize the nation’s economy.
He lamented, “Day in and day out, raw materials are exported out of this country to develop other economies.”
Barau said, “We have the capacity, human capital, and technical resources to use and process these raw materials. 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.
However, the Deputy Senate Minority Leader, Senator Kamorudeen Oyewumi (PDP Osun West), 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 no companies can process them locally?”
The Senator warned that strict bill enforcement 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. Over the past 20 to 30 years, Nigeria has been producing oil but lacked local refineries, resulting in most of it being exported in its raw form.
“Now that local refineries are operational, they supply local industries directly. If we assume that all the products should not be exported raw, what if we don’t have companies that will consume them locally,” he said.
He expressed concern over commodities such as cocoa, produced in large quantities with sufficient local processing capacity.
“Less than 10 percent of cocoa produced is consumed locally because no industries can process it. If we impose a blanket ban on raw exports without ensuring sufficient local capacity, it could penalise farmers who have invested heavily in production.
“This process must be gradual, allowing industries to catch up before implementing stringent measures,” Oyewumi cautioned.
After the bill passed its second reading, the Senate President, Senator Godswill Akpabio, referred it to the Committee on Science and Technology and mandated that it report back within four weeks.
Meanwhile, the Senate passed for Second Reading a bill for an Act to establish the Federal University of Science and Technology, Korokorosei, in Bayelsa State, for teaching, instructions, and research in science and technology.
This was in addition to the presentation and consideration of the bill’s general principles, sponsored by Senator Benson Konbowel (PDP Bayelsa Central) during the plenary.
Leading the debate on the bill, Konbowel said the university, when established, would not serve only Bayelsa people but become an institution of learning where people from all parts of the country could come and learn.
According to him, the proposed university will train young men and women and older Nigerians in science and technology, adding that education is a driver of the modern economy.
