RMRDC AND NIGERIA’S INDUSTRIAL FUTURE

William Johnson argues why policy continuity, raw material development and institutional reforms matter Nigeria’s quest for industrial transformation requires deliberate policies, institutional stability and sustained investment in research and development. At the centre of this aspiration is the Raw Materials Research and Development Council (RMRDC), an institution with enormous potential to drive industrialisation, economic diversification, employment generation and national prosperity. I believe the federal government should prioritise the effective implementation and strengthening of the RMRDC Act, 2022, rather than constantly pursuing legislative changes. Frequent policy alterations create uncertainty, weaken institutional stability and discourage long-term investment. The current leadership of the Council should consolidate the achievements of previous administrations, strengthen existing programmes and introduce improvements where necessary. Institutional progress should be built on continuity, not disruption. Equally important is the need for Nigeria to increase its capacity to produce adequate quantities of quality raw materials before making mandatory value addition the immediate priority. While value addition is desirable, imposing a compulsory 30 per cent requirement without first establishing sufficient production capacity, processing facilities, reliable electricity, transportation networks and supporting infrastructure could undermine the country’s industrial objectives. On the 30% proposal, the idea sounds patriotic but is unrealistic in practice. Nigeria exports raw materials like lithium, cocoa, sesame and solid minerals not because of a lack of ambition, but because of a lack of the basics for processing: stable power, affordable credit, good roads, industrial water and reliable ports. A law cannot legislate away these deficits. Forcing a miner in Nasarawa or a farmer in Taraba to add 30% value where there is no factory, cold chain or power does not create industry. It creates illegality. The 30% figure is also arbitrary. Does it mean 30% of weight, price, labour content or processing stages? That vagueness gives officials wide discretion, which in Nigeria often means rent-seeking, delays at ports and bribes to certify compliance. Instead of stopping raw export, the rule risks becoming another tollgate for exporters. It will also hurt the very people it claims to help. Smallholder farmers and artisanal miners cannot afford processing plants. Foreign buyers will simply move to Ghana, Côte d’Ivoire, Mali or the DRC where they can buy raw materials without a forced processing requirement. When buyers leave, farm-gate prices will collapse. The farmer will not suddenly become a chocolate manufacturer. He will become poorer. Successful value addition in Asia did not start with export bans. It started with infrastructure, industrial parks, tax holidays, subsidised energy for manufacturers and technical training. Nigeria wants to copy the outcome without building the foundation. We cannot ban our way to industrialisation. Any legislation on mandatory value addition must therefore involve broad consultations with relevant ministries, manufacturers, research institutions, the Nigerian Export Promotion Council and private-sector stakeholders. Nigeria must first strengthen agriculture and mining, invest in research and technology, improve logistics and develop infrastructure for competitive manufacturing. Another critical area is the RMRDC’s Technology Incubation and Pilot Plant Programme, one of the Council’s most valuable strategic assets. Before technologies from this programme are presented to investors, they must undergo proper technical validation, commercial viability assessments and market feasibility studies. Investors must be confident that the technologies are reliable, economically competitive, scalable and capable of meeting market demand. This will reduce investment risks and improve commercialisation prospects. Institutional continuity must also become a guiding principle. Successive leaderships should not abandon valuable programmes simply because they were initiated by previous administrations. They should preserve, strengthen and expand successful initiatives while introducing new ideas to address emerging challenges. The welfare and professional development of staff must also receive greater attention. A motivated and adequately trained workforce is essential to achieving the Council’s mandate. Investment in modern laboratories, advanced equipment, digital transformation, research funding, staff capacity building and effective performance management will significantly improve institutional productivity and research output. Ultimately, the federal government must recognise that a strong raw materials development institution is indispensable to Nigeria’s economic future. The RMRDC should be empowered to stimulate local production, encourage research and innovation, facilitate technology transfer and establish meaningful partnerships between research institutions and the private sector. Nigeria cannot build a sustainable industrial economy on policy uncertainty, inadequate raw material production and abandoned institutional programmes. What the country needs is consistency, strategic investment, practical reforms and leadership that understands the importance of building on existing foundations. Johnson writes from Lagos