CPPE opposes raw materials bill, warns of risks to exporters, manufacturers
BY TEMITOPE ADEBAYO
The Centre for the Promotion of Private Enterprise (CPPE) has raised strong objections to the Raw Materials Research and Development Council (RMRDC) Bill currently before the National Assembly, warning that the proposed legislation could trigger severe consequences for Nigerian exporters and manufacturers.
Director and CEO of CPPE, Dr Muda Yusuf, cautioned that the bill, which seeks to ban the export of primary products without at least 30 per cent local value addition and prohibit manufacturers from importing raw materials deemed available locally, would undermine the country’s already fragile non-oil export sector and manufacturing industry.
Yusuf argued that while the intention to boost local value addition is commendable, the bill lacks a proper balance between the interests of primary product exporters and local processors. He stressed that such a rigid policy could jeopardise thousands of jobs within Nigeria’s export supply chain, especially in sectors that depend on commodities like cocoa, cashew nuts, Gum Arabic, ginger, sesame seeds, and shea butter.
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He questioned the bill’s failure to outline clear metrics for enforcing the 30 per cent value addition requirement, determine which raw materials would be restricted for importation, and identify the capacity of local industries to handle increased processing demands.
Yusuf further described the proposal as a simplistic approach that ignores Nigeria’s deep-rooted challenges in manufacturing, including high energy costs, weak infrastructure, multiple taxes, exchange rate volatility, and bureaucratic bottlenecks — all of which, he argued, are bigger threats to value addition than the availability of raw materials.
He warned that passing the bill would open new channels for corruption, burden businesses with fresh layers of approvals, and create policy overlap, as the RMRDC and Ministry of Science and Technology have no mandate to set import or export bans — a responsibility that rightly belongs to fiscal policy authorities such as the Ministry of Finance, the Ministry of Industry, Trade and Investment, and the Nigeria Export Promotion Council.
The CPPE urged lawmakers to discontinue deliberations on the bill, calling on the RMRDC to focus on its core mandate of researching and offering cost-effective raw material solutions rather than interfering in trade policy matters, which Yusuf described as an aberration.
