CPPE opposes raw materials bill, warns of dire consequences for exporters, manufacturers

By Seun Ibiyemi

The Centre for the Promotion of Private Enterprise (CPPE) has voiced strong objections to the proposed Raw Materials Research and Development Council (RMRDC) Bill currently under review by the National Assembly, cautioning that its provisions could negatively impact Nigeria’s export and manufacturing industries.

The bill seeks to impose a ban on the export of primary products unless they undergo at least 30% local value addition and aims to prevent manufacturers from importing raw materials that are deemed sufficiently available within the country.

While acknowledging the potential economic benefits of boosting local value addition, CPPE argues that the bill is fundamentally flawed and may lead to unintended consequences.

“This proposal raises more concerns than solutions,” said Dr. Muda Yusuf, Director/CEO of CPPE. “It oversimplifies complex economic challenges and fails to address Nigeria’s critical issues in manufacturing, such as high production costs, energy shortages, and bureaucratic inefficiencies.”

CPPE also expressed apprehension that the bill could harm thousands of exporters who rely on raw primary products such as cocoa, cashew nuts, ginger, and sesame seeds.

The organisation further warned that the bill could result in job losses and create opportunities for corruption through cumbersome approval processes.

Additionally, CPPE questioned the appropriateness of RMRDC’s involvement in trade policy, arguing that decisions on imports and exports should lie within the remit of the Ministry of Finance and the Nigeria Export Promotion Council.

Dr. Yusuf called on the National Assembly to suspend further discussions on the bill and advised the RMRDC to concentrate on its primary mandate—developing cost-effective raw material solutions for manufacturers—rather than interfering with trade policy.