The Senate has advanced a bill mandating that at least 30% of raw materials be processed locally before exportation.
This bill, which seeks to amend the Raw Materials Research and Development Council Act, 2022, passed its second reading on Tuesday.
The bill, sponsored by Senator Peter Nwebonyi of APC Ebonyi North, is designed to enhance local manufacturing, create jobs, and reduce the nation's dependency on imports and foreign exchange.
During the plenary session, Senator Nwebonyi emphasized the economic benefits of the legislation, stating, "Promoting local processing to a minimum of 30 percent or more will add value to our economy, particularly to our Naira. It will also encourage innovation within our local industries, leading to a significant increase in domestic production."
Deputy Senate President, Senator Jibrin Barau, expressed strong support for the bill, highlighting the potential for economic revitalization. He remarked, "Once this bill is passed, it will now be mandatory that these raw materials be processed here, at least 30 per cent. This will energise our economy by providing jobs and promoting our real sector."
However, the bill has not been without its critics. Deputy Senate Minority Leader, Senator Kamorudeen Oyewumi of PDP Osun West, raised concerns about the practicality of the mandate, especially in sectors lacking local processing capacity.
He cautioned, "There is a need for amendments due to the nature of some products. We assume that all these products should not be exported raw, but what about when there are no companies to process them locally?"
The Senate President, Senator Godswill Akpabio, has referred the bill to the Committee on Science and Technology for further scrutiny, with a report expected within four weeks.
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