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 monumental 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, slightly 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 enough portions of high quality uncooked supplies earlier than making obligatory worth addition the fast 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 follow. Nigeria exports uncooked supplies like lithium, cocoa, sesame and stable minerals not due to an absence of ambition, however due to an absence of the fundamentals for processing: secure energy, reasonably priced 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 facility, chilly chain or energy doesn’t create business. It creates illegality.
The 30% determine can be arbitrary. Does it imply 30% of weight, worth, labour content material or processing levels? 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 turning into one other tollgate for exporters.
It can even damage the very folks it claims to assist. Smallholder farmers and artisanal miners can not afford processing crops. Foreign consumers will merely transfer to Ghana, Côte d’Ivoire, Mali or the DRC the place they’ll purchase uncooked supplies with out a compelled processing requirement. When consumers go away, farm-gate costs will collapse. The farmer won’t all of the 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 inspiration. We can not ban our technique 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, put money into analysis and know-how, enhance logistics and develop infrastructure for aggressive manufacturing.
Another essential space is the RMRDC’s Technology Incubation and Pilot Plant Programme, one of many Council’s most dear strategic property. Before applied sciences from this programme are introduced to buyers, they have to endure 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 mustn’t abandon worthwhile programmes just because they had been initiated by earlier administrations. They ought to protect, strengthen and increase profitable initiatives whereas introducing new concepts to handle rising challenges.
The welfare {and professional} improvement of workers should additionally obtain higher consideration. A motivated and adequately educated workforce is crucial to attaining the Council’s mandate. Investment in fashionable laboratories, superior tools, 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 know-how switch and set up significant partnerships between analysis establishments and the personal sector.
Nigeria can not construct a sustainable industrial financial 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
