The Director-General of the Raw Materials Research and Development Council, Prof Nnanyelugo Ike-Muonso, on Thursday, said the proposed 30 per cent Value Addition Mandate Bill currently before the National Assembly has the potential to increase the country’s Gross Domestic Product by 12 per cent within 12 months of full implementation.
Ike-Muonso made this known during a pre-event press briefing ahead of the Africa Raw Materials Summit 2025 scheduled for May 20–22 in Abuja.
There has been controversy surrounding the bill, which is sponsored by the council, particularly from the Centre for the Promotion of Private Enterprise. The Centre claims the bill could create significant adverse and unintended consequences for Nigerian exporters and manufacturers if it is passed into law.
Defending the bill, the DG said that beyond seeking to mandate a minimum of 30 per cent local processing of all raw materials before export, it would help in solving a strategic solution to structural issues plaguing Nigeria.
“This law is expected to shift the direction of financial flows from illicit to legitimate industrial investments.
Currently, illicit financial flows — especially in the solid minerals and agricultural sectors — thrive because raw materials are exported without any form of value addition,” the DG stated.
According to him, enforcing local beneficiation of raw materials will not only significantly grow GDP but will also address national insecurity.
“Let me be clear: this is not an abstract reform. If effectively implemented, Nigeria could see no less than a 12 per cent increase in GDP within a year. That’s the heart of real growth. When capital is directed toward legal processing industries, it reduces the financial power of those fueling insecurity through illegal extractive activities.
“Beyond economic gains, the bill would strengthen institutions, improve border enforcement against smuggling of high-value minerals disguised as ordinary sand, and increase awareness of resource value among law enforcement and regulatory agencies. The 30 per cent bill, he argued, would transform Nigeria from an exporter of raw materials to a hub of industrial processing, with ripple effects on job creation, revenue generation, and foreign exchange stability.”
Speaking on the upcoming Africa Raw Materials Summit, themed “Shaping the Future of Africa’s Resource Landscape”, he said it would serve as a rallying point for the implementation of this initiative across the continent.
The DG noted that Africa holds over 30 per cent of the world’s strategic raw materials, yet remains at the lower end of global value chains due to its continued export of unprocessed resources.
“This economic model is unsustainable. The summit will help mobilise continental consensus on the urgency of adding value to our resources, deepen intra-African trade through industrial linkages, and forge public-private partnerships needed for long-term transformation. This is a continental call to action. If we don’t industrialize now, we risk becoming spectators in a future built on resources we exported without value.”
He added that over 1,000 high-level delegates, including ministers from Ghana, South Africa, development banks, and regional agencies, are preparing to attend the summit.
He noted that the RMRDC has already moved from policy advocacy to legislative action to ensure sustained impact.
“We’re not just lobbying for change — we’re legislating it. Policy can be ignored, but law compels action,” he said.
