Lagos, April 22, 2025 – The Centre for the Promotion of Private Enterprises (CPPE) has advised the National Assembly to stop further deliberations on the Raw Materials Research and Development Council (RMRDC) Bill before it.
It also advised the Raw Materials Development Commission (RMDC), the sponsors of the bill, to withdraw it from the National Assembly.
The Centre gave the advice in a statement signed by Dr Muda Yusuf, its Director General.
It said the bill, as currently presented, had the prospect of creating significant adverse and unintended consequences for Nigerian exporters and manufacturers.
According to the centre, the bill proposes that no primary products exports should take place unless there is a minimum of 30% local value addition and manufacturers should not be allowed to import raw materials that are available in sufficient quantity in the country.
The CPP said while the idea of promoting local value addition was good for the economy as it would potentially enhance the chances of better earnings from our exports, the policy must ensure a balance between the interests of exporters of primary products and the processors.
“The current proposal in the bill will penalize exporters in the country, most of whom export primary products. Thousands of jobs in the primary products export supply chain would be put at risk.
‘If passed, the bill would create new corruption gateways in the bureaucracy as businesses will now be burdened with another chain of approvals.
“Additionally, the issue of export or import ban is not within the remit of the Raw Materials Research and Development Council or the Ministry of Science and Technology.
“It is in the realm of fiscal policy which is within the purview of the Ministry of Finance, working in collaboration with the Ministry of National Planning and the Ministry of Industry, Trade and Investment,”
“And in this particular instance, the Nigeria Export Promotion Council [NEPC] must be in the loop,” it said.
The Centre called for policy coordination and coherence to determine the implications for the non-oil export sector and the manufacturing sector and the economy as whole.
“Import and export regulations are not often legislated. They are trade policy issues which are calibrated from time to time by the fiscal policy authorities in the light of prevailing economic conditions.
“It is not a matter for the national assembly to legislate upon. Trade policies are also meant to be flexible, which is why they are not often a subject of legislation,’ it said.
The Centre called on the National Assembly to discontinue deliberations on the bill and encourage the raw material research and development council to focus on its core mandate of raw materials research to offer most cost-effective raw materials option for manufacturers.
It also described council’s involvement in trade policy matters as an aberration. (GBN)
