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 technology and nationwide prosperity.
I imagine the federal authorities ought to prioritise the efficient implementation and strengthening of the RMRDC Act, 2022, relatively than always pursuing legislative modifications. 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 ought to be constructed on continuity, not disruption.
Equally necessary is the necessity for Nigeria to extend its capability to supply ample portions of high quality uncooked supplies earlier than making obligatory worth addition the instant precedence. While worth addition is fascinating, imposing a obligatory 30 per cent requirement with out first establishing ample manufacturing capability, processing services, dependable electrical energy, transportation networks and supporting infrastructure may undermine the nation’s industrial targets.
On the 30% proposal, the concept sounds patriotic however is unrealistic in observe. Nigeria exports uncooked supplies like lithium, cocoa, sesame and strong minerals not due to an absence of ambition, however due to an absence of the fundamentals for processing: steady energy, reasonably priced credit score, good roads, industrial water and dependable ports. A legislation can’t legislate away these deficits. Forcing a miner in Nasarawa or a farmer in Taraba so as to add 30% worth the place there is no such thing as a manufacturing unit, chilly chain or energy doesn’t create trade. It creates illegality.
The 30% determine can also be arbitrary. Does it imply 30% of weight, worth, labour content material or processing phases? That vagueness provides officers extensive discretion, which in Nigeria usually 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 can even harm the very individuals it claims to assist. Smallholder farmers and artisanal miners can’t afford processing vegetation. Foreign patrons will merely transfer to Ghana, Côte d’Ivoire, Mali or the DRC the place they’ll purchase uncooked supplies with out a pressured processing requirement. When patrons depart, farm-gate costs will collapse. The farmer won’t immediately turn out to be a chocolate producer. He will turn out 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 end result with out constructing the inspiration. We can’t ban our method to industrialisation.
Any laws on obligatory 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, spend money on analysis and expertise, enhance logistics and develop infrastructure for aggressive manufacturing.
Another important space is the RMRDC’s Technology Incubation and Pilot Plant Programme, one of many Council’s Most worthy strategic property. Before applied sciences from this programme are introduced to buyers, they have to endure correct technical validation, business 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 turn out to be a tenet. Successive leaderships mustn’t abandon worthwhile programmes just because they have been initiated by earlier administrations. They ought to protect, strengthen and develop profitable initiatives whereas introducing new concepts to deal with rising challenges.
The welfare {and professional} improvement of workers should additionally obtain larger consideration. A motivated and adequately educated workforce is crucial to attaining the Council’s mandate. Investment in trendy laboratories, superior gear, digital transformation, analysis funding, workers capability constructing and efficient efficiency administration will considerably enhance institutional productiveness and analysis output.
Ultimately, the federal authorities should recognise {that a} sturdy uncooked supplies improvement establishment is indispensable to Nigeria’s financial future. The RMRDC ought to 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’t 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
