New Senate Bill Bans Export of Raw Materials to Boost Local Industries

•Moves to establish new university of science & tech in Bayelsa

Sunday Aborisade in Abuja

Senators at plenary yesterday, unanimously passed a bill to mandate local processing of at least 30 per cent of raw materials in the country before exportation.

The bill aims to amend the Raw Materials Research and Development Council Act, 2022, and introduce provisions for local processing and production protection.

It was sponsored by Senator Peter Nwebonyi (APC Ebonyi North).

Nwebonyi, while leading debate on the bill at Tuesday’s plenary, argued that mandating local processing would boost local manufacturing industries, create jobs for Nigerians, reduce dependence on imports and the demand for foreign exchange.

He said: “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.”

Nwebonyi added that the bill, if enacted, would shield Nigerian manufacturers from foreign competition by regulating the importation of raw materials that could be processed locally, fostering a favourable environment for domestic industries to thrive.

In his contribution, the Deputy President of the Senate, Jibrin Barau, said the proposed legislation was an innovation towards founding and re-energizing the nation’s economy.

He lamented that, “day in and day out, raw materials are exported out of this country to develop other economies.”

Barau said: “We have the capacity, human capital, and technical resources to act on these raw materials and to process these raw materials.

“By not doing so, we are undermining our economy while allowing for the promotion of other economies.

“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. Our real sector will be energised; we will be up and running.  It’s very straightforward.

“Several industries will emerge because it will now be mandatory that you don’t engage in this lazy attitude of taking raw materials outside the shores of this country. This raw material must be processed here.”

The Deputy Senate Minority Leader, Senator Kamorudeen Oyewumi (PDP Osun West), however, raised concerns about the bill’s practicality, particularly in sectors lacking local processing capacity.

He said: “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 Senator warned that strict enforcement of the bill could harm local farmers who rely on export markets for raw materials.

He advised against granting blanket approval, “as farmers may incur losses if raw materials cannot be processed locally.”

He said: “Over the past 20 to 30 years, Nigeria has been producing oil but lacked local refineries, resulting in most of it being exported in its raw form.

“Now that local refineries are operational, they supply directly to local industries. If we assume that all the products should not be exported raw, what if we don’t have companies that are going to consume them locally,” he said.

He expressed concern over commodities such as cocoa, which are produced in large quantities sufficient local processing capacity.

“Currently, less than 10% of cocoa produced is consumed locally because there are no industries to process it.

“If we impose a blanket ban on raw exports without ensuring sufficient local capacity, it could penalise farmers who have invested heavily in production.

“This process must be gradual, allowing industries to catch up before implementing stringent measures,” Oyewumi cautioned.

President of the Senate, Senator Godswill Akpabio, after the bill scaled second reading, referred it to the Committee on Science and Technology, and mandated it to report back within four weeks.

Meanwhile, the Senate, on Tuesday, passed for Second Reading a bill for an Act to establish the Federal University of Science and Technology, Korokorosei in Bayelsa State for teaching, instructions and research in science and technology.

This was sequel to the presentation and consideration of the general principles of the bill, sponsored by Senator Benson Konbowel (PDP Bayelsa Central) during plenary.

Leading the debate on the bill, Senator Konbowel said the university, when established, would not serve only Bayelsa people, but become an institution of learning where people from all parts of the country could come and learn.

According to him, the proposed university is for the training of young men and women and older Nigerians in science and technology, adding that education was a driver of modern economy.