Senate President Godswill Akpabio announced on Tuesday that the Senate will pass the 30% Minimum Value-Addition Bill within the week, a significant move aimed at industrializing Nigeria’s raw materials sector.
The bill, which has generated controversy, is sponsored by the Raw Materials Research and Development Council. Critics, including the Centre for the Promotion of Private Enterprise, warn that it could have adverse effects on Nigerian exporters and manufacturers.
During the opening of the inaugural Africa Raw Materials Summit in Abuja, Akpabio, represented by Senator Aminu Abbas, described the bill as “groundbreaking.” He emphasized its potential to stimulate domestic enterprise, create jobs, and build resilient industrial value chains.
Akpabio criticized Nigeria’s legacy of exporting raw materials while importing finished goods. He called for a paradigm shift from being merely a resource supplier to becoming a value creator. “We extract, yet others manufacture. This extractive model must now give way to a new paradigm rooted in local processing and regional integration,” he stated.
The bill mandates that no raw material of Nigerian origin shall be exported without undergoing at least 30% local value addition through processing, refining, or packaging. Akpabio assured that the legislation is designed to enhance domestic enterprise rather than stifle trade.
Additionally, he pledged the Senate’s support for the African Continental Free Trade Area, highlighting the need for increased investment from African pension funds and development banks in industrial infrastructure and green energy linked to raw materials.
Minister of State for Industry, Senator John Enoh, echoed the call for collaboration to ensure the swift passage of the bill, emphasizing its importance for Nigeria’s industrial growth. He lamented the current trade statistics, which show a higher volume of raw material exports compared to finished goods, stressing the need for change.
Enoh urged stakeholders to focus on building African factories rather than merely exploiting resources. He also highlighted the importance of supporting small and medium-sized enterprises and equipping young Africans with relevant skills for today’s job market.
Minister of Innovation, Science, and Technology, Uche Nnaji, added that Africa must stop exporting its future in raw form, advocating for a shift from extractive dependency to value-driven industrialization. He affirmed that value addition is essential for poverty alleviation, youth empowerment, and global competitiveness.
