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, reasonably than continuously 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 essential 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 instant precedence. While worth addition is fascinating, imposing a obligatory 30 per cent requirement with out first establishing enough manufacturing capability, processing amenities, dependable electrical energy, transportation networks and supporting infrastructure may undermine the nation’s industrial goals.
On the 30% proposal, the concept sounds patriotic however is unrealistic in apply. 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: steady 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 a 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, value, labour content material or processing levels? 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 turning into one other tollgate for exporters.
It will even damage the very folks it claims to assist. Smallholder farmers and artisanal miners can not afford processing vegetation. Foreign patrons will merely transfer to Ghana, Côte d’Ivoire, Mali or the DRC the place they will purchase uncooked supplies with out a pressured processing requirement. When patrons go away, farm-gate costs will collapse. The farmer is not going to 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 power for producers and technical coaching. Nigeria needs to repeat the end result with out constructing the muse. We can not ban our approach 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 know-how, enhance logistics and develop infrastructure for aggressive manufacturing.
Another crucial space is the RMRDC’s Technology Incubation and Pilot Plant Programme, one of many Council’s most respected strategic belongings. Before applied sciences from this programme are introduced to traders, they need to endure correct technical validation, business viability assessments and market feasibility research. Investors have to 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 invaluable programmes just because they had been initiated by earlier administrations. They ought to protect, strengthen and develop profitable initiatives whereas introducing new concepts to handle rising challenges.
The welfare {and professional} improvement of employees should additionally obtain higher consideration. A motivated and adequately skilled workforce is crucial to reaching the Council’s mandate. Investment in fashionable laboratories, superior gear, 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 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 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
