William Johnson argues why coverage continuity, uncooked materials improvement and institutional reforms matter
Nigeria’s quest for industrial transformation requires deliberate insurance policies, institutional stability and sustained funding in analysis and improvement. At the centre of this aspiration is the Raw Materials Research and Development Council (RMRDC), an establishment with huge potential to drive industrialisation, financial diversification, employment era and nationwide prosperity.
I consider the federal authorities ought to prioritise the efficient implementation and strengthening of the RMRDC Act, 2022, moderately than continuously pursuing legislative adjustments. Frequent coverage alterations create uncertainty, weaken institutional stability and discourage long-term funding. The present management of the Council ought to consolidate the achievements of earlier administrations, strengthen current programmes and introduce enhancements the place obligatory. Institutional progress must be constructed on continuity, not disruption.
Equally essential is the necessity for Nigeria to extend its capability to provide ample portions of high quality uncooked supplies earlier than making necessary worth addition the speedy precedence. While worth addition is fascinating, imposing a obligatory 30 per cent requirement with out first establishing ample manufacturing capability, processing amenities, dependable electrical energy, transportation networks and supporting infrastructure might undermine the nation’s industrial aims.
On the 30% proposal, the concept sounds patriotic however is unrealistic in observe. Nigeria exports uncooked supplies like lithium, cocoa, sesame and stable minerals not due to an absence of ambition, however due to an absence of the fundamentals for processing: steady energy, reasonably priced credit score, good roads, industrial water and dependable ports. A legislation can’t legislate away these deficits. Forcing a miner in Nasarawa or a farmer in Taraba so as to add 30% worth the place there isn’t any manufacturing facility, chilly chain or energy doesn’t create business. It creates illegality.
The 30% determine can be arbitrary. Does it imply 30% of weight, value, labour content material or processing levels? That vagueness provides officers extensive discretion, which in Nigeria usually means rent-seeking, delays at ports and bribes to certify compliance. Instead of stopping uncooked export, the rule dangers changing into one other tollgate for exporters.
It can even harm the very folks it claims to assist. Smallholder farmers and artisanal miners can’t afford processing crops. Foreign patrons will merely transfer to Ghana, Côte d’Ivoire, Mali or the DRC the place they will purchase uncooked supplies with no compelled processing requirement. When patrons depart, farm-gate costs will collapse. The farmer won’t immediately develop into a chocolate producer. He will develop into poorer.
Successful worth addition in Asia didn’t begin with export bans. It began with infrastructure, industrial parks, tax holidays, subsidised vitality for producers and technical coaching. Nigeria desires to repeat the end result with out constructing the muse. We can’t ban our method to industrialisation.
Any laws on necessary worth addition should subsequently contain broad consultations with related ministries, producers, analysis establishments, the Nigerian Export Promotion Council and private-sector stakeholders. Nigeria should first strengthen agriculture and mining, spend money on analysis and know-how, enhance logistics and develop infrastructure for aggressive manufacturing.
Another essential space is the RMRDC’s Technology Incubation and Pilot Plant Programme, one of many Council’s most dear strategic belongings. Before applied sciences from this programme are introduced to traders, they need to bear correct technical validation, business viability assessments and market feasibility research. Investors have to be assured that the applied sciences are dependable, economically aggressive, scalable and able to assembly market demand. This will scale back funding dangers and enhance commercialisation prospects.
Institutional continuity should additionally develop into a guideline. Successive leaderships shouldn’t abandon precious programmes just because they have been initiated by earlier administrations. They ought to protect, strengthen and broaden profitable initiatives whereas introducing new concepts to handle rising challenges.
The welfare {and professional} improvement of workers should additionally obtain better consideration. A motivated and adequately educated workforce is important to attaining the Council’s mandate. Investment in fashionable laboratories, superior tools, digital transformation, analysis funding, workers capability constructing and efficient efficiency administration will considerably enhance institutional productiveness and analysis output.
Ultimately, the federal authorities should recognise {that a} robust uncooked supplies improvement establishment is indispensable to Nigeria’s financial future. The RMRDC must be empowered to stimulate native manufacturing, encourage analysis and innovation, facilitate know-how switch and set up significant partnerships between analysis establishments and the non-public sector.
Nigeria can’t construct a sustainable industrial financial system on coverage uncertainty, insufficient uncooked materials manufacturing and deserted institutional programmes. What the nation wants is consistency, strategic funding, sensible reforms and management that understands the significance of constructing on current foundations.
Johnson writes from Lagos
