|By Babatunji Wusu-
-CPPE Warns Proposed Raw Materials Bill Will Cripple Manufacturing, Export Sectors
–Says Bill Will Create Corruption Gateways, Jeopardize Jobs and Investor Confidence
The Centre for the Promotion of Private Enterprise (CPPE) has rejected the proposed Raw Materials Bill currently before the National Assembly, warning that it would harm Nigeria’s manufacturing sector, stifle exports, and trigger job losses across multiple value chains.
In a strongly worded statement issued on Monday, CPPE CEO, Dr Muda Yusuf, described the bill as flawed, unrealistic, and economically dangerous, calling for its immediate withdrawal.
The bill seeks to restrict the importation of essential raw materials and impose barriers on the export of primary products — a move CPPE says will destabilise businesses, increase production costs, and create new bureaucratic bottlenecks.
“On the face of it, promoting local value addition is commendable. But the policy must strike a balance between exporters of primary products and processors,” Dr Yusuf said.
“The bill, if passed, will punish thousands of exporters, destroy jobs, and endanger key export products like cocoa, cashew, sesame seeds, gum arabic, and shea butter.”
He questioned the 30% minimum value addition requirement proposed in the bill, demanding clarity on how the metric would be measured, enforced, or approved — and by whom.
“What study has been done to assess domestic processing capacity? Who determines what raw materials can be imported? This bill raises more questions than answers,” he stated.
Dr Yusuf also faulted the involvement of the Raw Materials Research and Development Council (RMRDC) in trade policy issues, insisting that the Council lacks the mandate to legislate on import or export restrictions. Such responsibilities, he said, fall under the Federal Ministry of Finance, in collaboration with the Ministries of Industry, Trade & Investment, National Planning, and the Nigeria Export Promotion Council (NEPC).
“Trade policy is not static; it must remain flexible to adapt to economic realities. Legislating import or export bans is outside the scope of the National Assembly,” the statement added.
The CPPE further warned that the bill could open the door to new layers of corruption, as manufacturers would be forced to seek multiple approvals to operate.
Instead of legislating bans, Dr Yusuf urged the government to address structural barriers to value addition such as energy costs, interest rates, logistics, forex volatility, and multiple taxation — which he identified as the real constraints confronting manufacturers.
“Most agro-processors have collapsed not because of raw material shortages, but due to prohibitive production costs and lack of competitiveness,” he said.
The CPPE concluded by urging the National Assembly to discontinue discussions on the bill and called on the RMRDC to refocus on its core mandate — offering innovative, cost-effective raw material solutions to industries rather than engaging in trade policy overreach.
