RMRDC Pushes for Significant Reduction in Raw Material Imports by 60%

The Raw Materials Research and Development Council (RMRDC) has called for a drastic reduction of Nigeria’s raw material imports by as much as 60%, stressing that the country must prioritise local production and value addition to boost industrial growth, conserve foreign exchange, and create more employment opportunities.

Speaking during an industry stakeholders’ meeting in Abuja, the Director-General of RMRDC, Professor Hussaini Ibrahim, explained that Nigeria’s heavy dependence on imported raw materials was unsustainable and posed a significant threat to the economy. He noted that the high import bill, which runs into billions of dollars annually, drains the nation’s foreign reserves and hampers efforts to achieve economic self-reliance.

According to him, the council’s latest research has shown that several industries, particularly in manufacturing, agro-processing, and chemical production, still rely heavily on foreign-sourced inputs despite Nigeria’s abundant natural and agricultural resources. He said this trend must be reversed through deliberate investment in local raw material sourcing, technology adoption, and capacity building.

Professor Ibrahim emphasised that a 60% cut in imports could be achieved within a reasonable time frame if both the public and private sectors work in synergy. “We have what it takes to meet a substantial part of our raw material needs locally. However, this requires the right policies, consistent implementation, and strong industry participation,” he stated.

He further argued that import dependency not only undermines Nigeria’s balance of payments but also exposes the manufacturing sector to global supply chain disruptions, currency fluctuations, and price volatility. “Recent events, including global crises and exchange rate instability, have shown why we must rely less on imported materials and focus on developing our local resource base,” he added.

The RMRDC boss outlined several initiatives already being implemented to address the issue, including the mapping of raw material availability across states, support for research into industrial raw materials, and the promotion of backward integration in key sectors. He noted that the council has been collaborating with universities, research institutions, and industry players to develop alternative local substitutes for imported inputs.

In addition, the council is working with state governments to encourage the establishment of processing facilities close to areas where raw materials are sourced. This, according to Ibrahim, would not only cut logistics costs but also stimulate rural industrialisation and reduce post-harvest losses in agriculture-based industries.

Industry operators present at the meeting expressed support for the council’s call, but urged the government to tackle some of the structural challenges that have hindered local raw material production. These include inadequate infrastructure, poor access to credit, weak research-to-market linkages, and inconsistent policy frameworks.

The Managing Director of a Lagos-based manufacturing firm, who spoke on the sidelines, noted that while Nigerian industries are willing to source materials locally, quality, availability, and pricing often pose challenges. He called for stronger government incentives, such as tax breaks, grants, and subsidised loans, to encourage investment in local sourcing and processing.

Economic analysts have also welcomed the move, pointing out that reducing raw material imports would help stabilise the naira, lower production costs in the long term, and improve Nigeria’s trade balance. They also noted that it could lead to increased competitiveness of Nigerian goods both locally and internationally.

However, they cautioned that achieving a 60% reduction will require a phased approach and significant investment in research, technology, and skills development. “The goal is realistic, but it must be backed by a clear roadmap and measurable targets. Import substitution policies must also be implemented in a way that does not stifle industries in the short term,” an economist noted.

Professor Ibrahim reiterated that the RMRDC will continue to champion local content development, stressing that Nigeria’s path to industrialisation depends on maximising its raw material potential. “Every ton of raw material we import is a missed opportunity for our farmers, miners, processors, and industrialists. We must change this narrative if we are serious about building a resilient economy,” he concluded.

The call by the RMRDC aligns with broader government efforts to promote self-sufficiency in production and reduce over-reliance on imports. With the country facing foreign exchange pressures and the manufacturing sector grappling with high costs, stakeholders believe that boosting local raw material production is not just an economic necessity but also a strategic imperative for national development.

If implemented effectively, the proposed reduction could transform Nigeria’s industrial landscape, creating jobs, fostering innovation, and positioning the nation as a competitive player in the global supply chain. The coming years will determine how far the country can go in turning its resource potential into industrial prosperity.