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The Promotion Center for Private Companies, CPPE, has criticized the proposed raw material bill before the Nigerian National Assembly said it would bring significant and undesirable consequences to the Nigerian exporter and producers if passed.
The bill, which seeks to limit producers from importing essential raw materials and intends to impose obstacles to exports, is waiting for a part by the National Assembly.
Therefore, the economic tank calls for the bill to be withdrawn.
CPPE Chief Executive Officer, Dr. Muda Yusuf, made this known in a statement sent to Ripples Nigeria on Monday, April 21, 2025.
The statement reads, “In front of him, the idea of promoting the addition of local values both for the economy and has the potential to increase the possibility of better income from our exports. But the policy must ensure the balance between the interests of exporters of primary products and processors. It is also important to conduct a strong study of the availability of domestic raw materials.
What is needed is a win-win proposition, not zero-sum games. The current proposal in this bill will punish exporters in this country, which mostly exports primary products. Thousands of jobs in the supply chain of export supply of primary products, Pondok Pinian. Nigerian exports. Until now, the domestic purification capacity is zero.
“This proposition raises a number of questions. What metric will be used to determine the addition of a minimum value of 30%?
“Who will determine and give approval for exports to continue? What studies have been done to determine the capacity of local processing for each primary product category that is currently being exported?”
“What metric will be used to determine the raw materials that will be permitted by producers to the country?”
Also read: CPPE Kick on FG Plans to ban Solar Panel Imports
“What is an effective time frame for implementation? Is it in the Mandate of the Research and Development of Raw Materials (RMRDC) to promote export or import ban?
“The position of CPPE is that this bill raises more questions than answers. This is a very simple proposition that has not taken into account the critical challenges of manufacturing, processing, and adding values in the Nigerian economy. This contextual understanding is very important to enrich conversations around raw material bills. Most agro processors have not been too much because the challenges of raw materials but because of the availability of raw materials. collapsed because of the challenge because of the availability of raw materials but because of the availability of raw materials but because of the tariff.
“Production costs are barriers. Energy costs, funds costs, logistics costs, bureaucratic congestion, exchange rates, multiple taxation, etc. This is a greater problem that needs to be overcome to promote additional value. We must be a cause in our approach to solving problems and fewer focus on symptoms.
“If it is ratified, the bill will create a new corruption gateway in the bureaucracy because the business will now be burdened with another chain of approval.
“Additionally, the issue of export or import beans is not within the remit of the raw materials research and development council or the Ministry of Science and Technology. It is in the Realm of Fiscal Policy, which is within the purpose of the ministry of finance, working in collaboration with the ministry of the ministry, Planning and the Ministry of Industry, Trade, and Investment. [NEPC] must be in the loop. This is important to determine the implications for the non-miny export sector, the manufacturing sector, and the overall economy. This is also important for coordination and policy coherence.
“Import and export regulations are not often promulgated. They are the problem of trading policies that are calibrated from time to time by the authority of the fiscal policy given the applicable economic conditions. This is not a problem for the National Assembly to make laws. Trade policies are also intended to be flexible, that is why they are not often the subject of the law.
“Therefore, we say that the National Assembly must stop the consideration of the bill and encourage the Raw Material Research Council and the Development Council to focus on the mandate of the main research of raw materials to offer the most cost -effective raw material options for producers. The involvement of the council in trade policy matters is nothing.
By: Babajide Okeowo
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