In a decisive move aimed at spurring industrialisation and boosting local manufacturing, the Senate has passed a bill requiring that all raw materials intended for export must undergo at least 30 percent local processing.
The bill, which amends the Raw Materials Research and Development Council Act of 2022, was passed following the adoption of a report by the Senate Committee on Science and Technology.
Sponsored by Onyekachi Nwebonyi (Ebonyi North), the legislation seeks to curb the export of unprocessed raw materials, promote value addition, and stimulate economic growth through increased local content.
Under the new law, exporters who fail to meet the 30 percent processing threshold will face a 15 percent levy on the export value of the goods and may have their raw material value addition certificates suspended or revoked.
In more severe cases, such exports will be treated as smuggled goods and penalised accordingly under existing customs and trade laws.
The bill assigns the Raw Materials Research and Development Council the responsibility of developing clear benchmarks and guidelines to define what qualifies as 30 percent processing.
