In a significant policy shift aimed at accelerating industrialisation and enhancing local manufacturing, the Nigerian Senate has passed a bill requiring that all raw materials destined for export must undergo at least 30% local processing.
The bill, which amends the Raw Materials Research and Development Council Act of 2022, was passed after the Senate adopted the report of the Committee on Science and Technology. It was sponsored by Senator Onyekachi Nwebonyi (Ebonyi North).
According to the Senate, the new legislation is designed to curb the export of unprocessed raw materials, foster value addition, and stimulate economic growth by strengthening local content requirements.
Under the proposed law, exporters who fail to meet the 30% processing threshold will face a 15% levy on the export value of the goods. In addition, such exporters risk having their Raw Material Value Addition Certificates suspended or revoked.
In more severe violations, such exports will be classified as smuggled goods and penalised under existing customs and trade laws.
The law assigns the Raw Materials Research and Development Council (RMRDC) the responsibility to develop clear benchmarks and guidelines for what constitutes the 30% processing threshold.
Senator Nwebonyi noted that the bill will drive job creation, build domestic industrial capacity, and reduce Nigeria’s overdependence on crude commodity exports.
