RMRDC Unveils 30% Value Addition Policy to Transform Nigeria’s Raw Material Exports
In a bold industrial policy shift, the Raw Materials Research and Development Council (RMRDC) has announced a new national framework that mandates a minimum of 30% value addition on all local raw material exports.
The move marks a significant milestone in Nigeria’s drive to industrialize its economy, deepen small and medium enterprise (SME) competitiveness, and reduce its historic dependence on unprocessed commodity exports.
The announcement was made by Engr. Obassi Ettu, Deputy Director of RMRDC’s Process Equipment Maintenance Division, during the Business Session of the Pre-9th Annual Conference of the Guild of Corporate Online Publishers (GOCOP) held in Lagos.
“Some of Nigeria’s raw materials can yield three or four end-products, yet we export them in crude form and get paid for just one,” Ettu said. “That must change. Every exported material must have at least 30% of its value added locally.”
Ending the Commodity Trap: RMRDC’s Push for Industrial Transformation
Nigeria, blessed with vast mineral and agricultural resources, has for decades remained trapped in the “raw export, finished import” paradox, losing billions in potential industrial earnings.
Ettu noted that the Council’s 30% policy is designed to reverse this pattern — ensuring Nigeria retains a substantial portion of the wealth generated from its natural resources.
“We cannot continue exporting wealth in raw form while importing finished goods at higher prices,” Ettu stressed. “This initiative is about changing that mindset — from extractive dependence to productive value creation.”
The Council’s policy will apply to all raw materials leaving Nigeria, compelling exporters to engage in local processing, packaging, or semi-manufacturing before shipment.
Partnerships Driving Innovation and Industrial Capacity
To achieve this transformation, RMRDC is leveraging strategic international partnerships, most notably with China, to build capacity and develop new technologies for local industries.
Ettu revealed that RMRDC staff undergo annual technical training in China, an initiative that has already yielded tangible results.
“Through this collaboration, we have developed 13 new varieties of sweet sorghum and are currently conducting toxicological tests to ensure their safety for consumption,” he said.
Sweet sorghum, a versatile crop used in food, beverages, and biofuel production, represents RMRDC’s broader goal of expanding Nigeria’s agro-industrial value chain through innovation and research.
Applied Research and Reverse Engineering: From Theory to Market
Unlike traditional academic research that ends in publications, RMRDC’s new focus is applied and commercialized research — turning ideas into marketable products.
The Council has adopted reverse engineering techniques to design, adapt, and manufacture equipment for local processing industries, particularly in agriculture, food technology, and mineral beneficiation.
“We no longer see research as an academic exercise,” Ettu said. “Our focus is on converting laboratory work into profitable ventures that create jobs and save foreign exchange.”
This pragmatic model, he explained, has allowed RMRDC to develop indigenous technologies that reduce Nigeria’s reliance on imported industrial machinery — a long-standing drain on the economy.
Targeting Import Substitution and Export Diversification
Ettu expressed concern that despite Nigeria’s enormous natural resource base, the country still imports raw materials that can easily be sourced locally.
RMRDC now plays an advisory role to the Federal Government, identifying materials that should be restricted from importation or replaced with domestic substitutes.
This strategy aligns with the government’s economic diversification and backward integration goals, ensuring Nigeria not only substitutes imports but also adds value for export competitiveness.
“Our goal is simple — to move Nigeria up the global value chain,” Ettu emphasized. “We are creating a system where Nigerian-made products can compete anywhere in the world.”
Empowering SMEs: From Local Inputs to Global Markets
The 30% value addition policy is also designed to empower small and medium enterprises (SMEs), which constitute over 80% of Nigeria’s industrial base.
By promoting local processing of raw materials — from shea nuts and cassava to solid minerals and agricultural produce — SMEs can now tap into higher-value export markets, generate employment, and stimulate rural industrialization.
RMRDC believes that a deliberate focus on inclusive industrial growth can unlock sustainable GDP expansion, while fostering innovation across the value chain.
Innovation in Everyday Life: Practical Industrialization at Work
Ettu highlighted several ongoing RMRDC projects that reflect the Council’s innovation-driven approach to grassroots wealth creation.
One such project involves developing tomato seed varieties that households can plant and sell directly to nearby restaurants and local processors.
“This may sound small, but it’s the kind of community-level industrialization that transforms livelihoods,” Ettu noted. “It’s about making Nigerians participants — not just consumers — in the value creation process.”
Such initiatives underscore RMRDC’s evolving mission: to bridge the gap between research, industry, and entrepreneurship, ensuring that industrialization begins from the bottom up.
The Need for Policy Continuity and Institutional Support
While acknowledging the Council’s achievements, Ettu cautioned that policy discontinuity remains a major obstacle to sustainable industrial progress.
He urged government at all levels to ensure continuity in research funding, regulatory alignment, and incentive structures that protect industrial initiatives from political disruption.
“Industrial growth is not a one-year project — it’s a generational commitment,” he said. “For Nigeria to become a truly industrialized nation, we must protect our policies from constant shifts.”
BRANDECONOMY Analysis: RMRDC’s 30% Policy as a Turning Point for Nigeria’s Industrial Economy
From a broader economic lens, RMRDC’s 30% value addition mandate signals a strategic turning point in Nigeria’s industrial policy.
For decades, the country has exported raw materials while importing the finished goods derived from them — a cycle that drains jobs, revenue, and technological know-how.
The new directive is not just about policy compliance; it represents a structural rethinking of value creation.
If implemented effectively, it could:
- Reduce Nigeria’s import bill and enhance foreign exchange earnings.
- Stimulate local processing industries and promote SME-led manufacturing clusters.
- Encourage technology transfer and innovation through partnerships and reverse engineering.
- Lay the foundation for sustainable industrialization and export diversification.
However, the policy’s success will depend on implementation discipline, investment in infrastructure, and access to affordable financing for SMEs.
Conclusion: From Extraction to Creation
The RMRDC’s 30% value addition policy reflects a new vision for Nigeria’s industrial future — one that shifts the nation from a resource-dependent exporter to a knowledge-based, innovation-driven economy.
By prioritizing local processing, technology adaptation, and SME empowerment, Nigeria has an opportunity to unlock billions in unrealized value and build a self-sustaining industrial ecosystem.
As BRANDECONOMY notes, this policy could well become the cornerstone of Nigeria’s next industrial revolution — if followed through with consistency, collaboration, and courage.
