RMRDC Calls for 60% Reduction in Raw Material Imports

The Raw Materials Research and Development Council (RMRDC) has stated that Nigeria must reduce its dependence on imported raw materials by at least 60 per cent within the next five years if it is to become an industrial powerhouse.

Director-General of RMRDC Prof. Nnanyelugo Ike-Muonso made the call on Tuesday in Lagos during the 2025 edition of the Nigeria Manufacturing & Equipment and Nigerian Raw Materials Expo, where he decried the country’s high import bill for raw materials, which hit N4.53tn in the first nine months of 2024.

“Over 70 per cent of manufacturing inputs used in our economy are imported. These data points expose a structural weakness: we export our raw materials in their crude form, import in refined quality, and surrender jobs and value offshore before we have even begun,” he said.

According to the RMRDC boss, the way out of the dependence on imported inputs is to reduce foreign raw material imports by at least 60 per cent in the next five years and increase the use of local resources.

He explained, “It is clear that to reposition Nigeria as an industrial powerhouse, we must reduce foreign raw material imports by at least 60% in the next five years and significantly increase local resource utilisation.”

Citing statistics, Ike-Muonso noted that Nigeria’s manufacturing sector contributed only 9.62 per cent to GDP in Q1 2025, a drop from the 9.8 per cent recorded in the same period of 2024.

He argued that the country has the potential to industrialise rapidly, with over 120 commercially viable solid minerals, vast agricultural resources, and a large youthful population. But Ike-Muonso reiterated that what is missing is “strategic coordination, bold implementation, and technology-backed commitment.”

Ike-Muonso also called for tax support to incentivise value addition and also recommended that the government support the emergence of industrial hubs and clusters around strategic raw material zones, deepen research–industry collaboration for tailored innovation, facilitate technology transfer and infrastructure finance, and integrate Small and Medium-sized Enterprises across the manufacturing spectrum.

To support this goal, the RMRDC said it has commissioned a Research and Demonstration Plant Complex at the restored Obasanjo Space Centre in Abuja, which showcases more than 50 pilot plants developed locally. The RMRDC chief added, “Each reverse-engineered or painstakingly home-built piece of process equipment is proof that Nigeria can transform raw materials into wealth, right here.”

Ike-Muonso disclosed that the Senate had recently passed the RMRDC Amendment Bill 2025, which mandates that no raw materials may be exported unless they have undergone at least 30 per cent value addition locally. He described the legislative milestone as “a turning point, from exporting raw jobs to nurturing them in our soil.”

He added that the Federal Government had approved new tax incentives for manufacturers that use local inputs. “Very soon, manufacturers who research, develop and patronise local raw materials will pay significantly lower taxes than those who do not,” he said.

The Minister of Innovation, Science and Technology, Chief Uche Geoffrey Nnaji, said the Federal Government was committed to commercialising research outcomes and promoting the use of indigenous technology.

“The President mandated us to ensure it is not business as usual and that we should now start commercialising the outcome of our research,” the minister said.

Chief Nnaji revealed that the government had inaugurated an Inter-Ministerial Committee on Research and Development chaired by the Vice President and his ministry to drive funding and implementation.

He noted that products manufactured locally at a commercial scale will enjoy protection under Executive Order 5.

“Any product that is produced in this country at a commercial level, importation will be banned automatically,” he said, citing solar panels as an example of goods already benefiting from the policy.

The Minister noted that the current administration was also focused on encouraging Chinese and other foreign manufacturers to relocate their production lines to Nigeria, creating jobs and boosting local content.

President of the Manufacturers Association of Nigeria, Francis Meshioye, remarked that the expo aligned perfectly with the Federal Government’s Nigeria First policy and was reengineered to promote the patronage of made-in-Nigeria products.

“By embracing cutting-edge technology solutions, we are accelerating innovation, resilience, and long-term value for our stakeholders,” he said, stressing the importance of adopting smart factory protocols, waste reduction strategies, and green tech partnerships.