The Centre for the Promotion of Private Enterprise (CPPE) has kicked against the Raw Materials Research and Development Council (RMRDC) Bill currently before the National Assembly, saying it has the prospect of creating significant adverse and unintended consequences for Nigerian exporters and manufacturers.
Director of the centre, Muda Yusuf, posited that the policy has to ensure a balance between the interests of exporters of primary products and the processors, emphasising the need to undertake a robust study on domestic raw materials availability before legislating on a ban on raw materials for manufacturers.
“What is needed is a win-win proposition, not a zero-sum game.” The bill currently proposes that no primary products exports should take place unless there is a minimum of 30% local value addition.
“That manufacturers will not be allowed to import raw materials that are available in sufficient quantity in the country.”
In view of the content of the bill, Yusuf noted that, on the face of it, the idea of promoting local value addition is good for the economy and potentially enhances the chances of better earnings from our exports.
