Expect 30% local value addition to raw products before export—Senate

Nigerian Senate has passed a bill making it compulsory for a minimum of 30% local value addition to raw material before export. The proposed law prescribes that all raw materials must undergo at least 30 per cent local processing before they can be exported. The bill was sponsored by Senator Onyekachi Nwebonyi, representing Ebonyi North. The passage of the bill followed the adoption of the report of the Senate Committee on Science and Technology on the amendment of the Raw Materials Research and Development Council (RMRDC) Act, 2022. The bill stipulates, among others, that any exporter who fails to meet the 30 percent processing requirement will be subjected to a 15 percent levy on the export value of the raw materials.
Any erring exporter may also face suspension or revocation of his or her raw material value addition certificate. The bill gives the RMRDC the responsibility of issuing detailed guidelines on what constitutes 30 percent processing, including benchmarks for quality, safety, and environmental sustainability. The level of processing of the raw materials will be based on the nature of the material, the technology applied, and the standards required by the target export market. Raw materials exported without meeting the processing threshold will be deemed as “smuggled goods” and penalised under existing Customs and trade regulations.
Godswill Akpabio, the Senate President, commended the sponsor of the bill for his foresight, saying the bill would create job opportunities, boost Nigeria’s trade competitiveness globally, and promote responsible management of the country’s natural resources. He said the bill would also boost Nigeria’s capacity to reduce imported raw materials, promote sustainable resource management and protect the environment.