RMRDC Urges 60% Cut in Raw Material Imports to Drive Nigeria’s Industrial Growth

The Raw Materials Research and Development Council (RMRDC) has called for a significant reduction in Nigeria’s reliance on imported raw materials, recommending a 60% cut within five years to position the country as a true industrial power.

Speaking at the 2025 Nigeria Manufacturing & Equipment and Raw Materials Expo in Lagos, RMRDC Director-General Prof. Nnanyelugo Ike-Muonso lamented the country’s high dependence on imported manufacturing inputs, which amounted to ₦4.53 trillion in the first nine months of 2024.

“Currently, more than 70% of the raw materials used by Nigerian manufacturers are imported,” he said. “We are exporting raw materials in crude form and re-importing them as finished goods — exporting jobs and value in the process.”

To reverse this trend, Ike-Muonso proposed cutting foreign raw material imports by at least 60% within five years and significantly increasing the use of domestically available resources.

He pointed out that in Q1 2025, Nigeria’s manufacturing sector contributed just 9.62% to GDP, down from 9.8% in Q1 2024, underscoring the urgency for action. Despite the decline, he stressed that Nigeria possesses the necessary assets to industrialise rapidly, including over 120 commercially viable solid minerals, vast agricultural resources, and a large youthful population. What remains lacking, he said, is strategic coordination, technological commitment, and bold policy execution.

The RMRDC chief also advocated for tax incentives to encourage value addition, the development of industrial clusters around raw material zones, improved research–industry collaboration, technology transfer, infrastructure financing, and SME integration into manufacturing value chains.

To support these goals, the RMRDC recently unveiled a Research and Demonstration Plant Complex at the restored Obasanjo Space Centre in Abuja, showcasing over 50 locally developed pilot plants. According to Ike-Muonso, each plant reflects Nigeria’s capacity to convert raw materials into wealth.

He also announced that the Senate has passed the RMRDC Amendment Bill 2025, which prohibits the export of raw materials without at least 30% local value addition. He described this legislative move as a critical step toward retaining economic value within Nigeria.

In addition, the Federal Government has approved new tax breaks for manufacturers using local raw materials. “Soon, companies that invest in local R&D and materials will benefit from significantly reduced tax rates,” he added.

Minister of Innovation, Science, and Technology, Chief Uche Geoffrey Nnaji, reaffirmed the government’s commitment to commercialising research outcomes and promoting indigenous technology. He revealed that a new Inter-Ministerial Committee on R&D, chaired by the Vice President, had been set up to lead the drive for funding and implementation.

Nnaji also referenced Executive Order 5, which restricts the importation of goods that are already being produced locally at commercial scale. He cited solar panels as one of the items benefiting from this protection and noted the government’s push to attract foreign manufacturers, including Chinese firms, to relocate production lines to Nigeria.

Meanwhile, Francis Meshioye, President of the Manufacturers Association of Nigeria, praised the expo’s alignment with the Nigeria First policy, emphasizing its role in boosting the consumption of locally made products. He called on stakeholders to embrace smart technologies, green partnerships, and waste reduction practices to strengthen resilience and competitiveness.