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 imagine the federal authorities ought to prioritise the efficient implementation and strengthening of the RMRDC Act, 2022, somewhat than consistently 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 present programmes and introduce enhancements the place needed. Institutional progress must be constructed on continuity, not disruption.
Equally necessary is the necessity for Nigeria to extend its capability to provide satisfactory portions of high quality uncooked supplies earlier than making necessary worth addition the quick 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 may undermine the nation’s industrial targets.
On the 30% proposal, the thought sounds patriotic however is unrealistic in observe. Nigeria exports uncooked supplies like lithium, cocoa, sesame and stable minerals not due to a scarcity of ambition, however due to a scarcity of the fundamentals for processing: steady energy, inexpensive credit score, good roads, industrial water and dependable ports. A regulation can not 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 unit, 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 phases? That vagueness offers officers vast discretion, which in Nigeria typically 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 may even harm the very individuals it claims to assist. Smallholder farmers and artisanal miners can not afford processing vegetation. Foreign consumers will merely transfer to Ghana, Côte d’Ivoire, Mali or the DRC the place they’ll purchase uncooked supplies with no compelled processing requirement. When consumers go away, farm-gate costs will collapse. The farmer won’t all of a sudden grow to be a chocolate producer. He will grow to be 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 needs to repeat the result with out constructing the muse. We can not ban our solution to industrialisation.
Any laws on necessary worth addition should due to this fact 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, put money into analysis and expertise, enhance logistics and develop infrastructure for aggressive manufacturing.
Another vital space is the RMRDC’s Technology Incubation and Pilot Plant Programme, one of many Council’s Most worthy strategic belongings. Before applied sciences from this programme are offered to traders, they need to bear correct technical validation, industrial viability assessments and market feasibility research. Investors should 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 grow to be a guideline. Successive leaderships shouldn’t abandon precious programmes just because they had been initiated by earlier administrations. They ought to protect, strengthen and increase profitable initiatives whereas introducing new concepts to deal with rising challenges.
The welfare {and professional} improvement of employees should additionally obtain better consideration. A motivated and adequately educated workforce is crucial to reaching the Council’s mandate. Investment in trendy laboratories, superior tools, digital transformation, analysis funding, employees 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 expertise switch and set up significant partnerships between analysis establishments and the non-public sector.
Nigeria can not construct a sustainable industrial economic 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 present foundations.
Johnson writes from Lagos
