CPPE: Nigeria's raw material bill should reflect challenges facing manufacturers

The Director at the Centre for the Promotion of Private Enterprises, Muda Yusuf, expressed concerns about some provisions in the Raw Materials Research and Development Council Bill currently under consideration by the National Assembly. In a recent interview with CNBC Africa, Yusuf highlighted the importance of considering the challenges faced by manufacturers in Nigeria's economy. He specifically pointed out the potential impact of clauses such as the 30 per cent local value addition requirement on primary product exports and the proposed ban on the export of raw materials that are already abundant in the country. According to Yusuf, these provisions could have adverse effects on exporters and may not properly address the country's industrial capacity. The discussion emphasized the need for a thorough assessment and inclusive decision-making process to ensure the bill aligns with the realities of Nigeria's manufacturing sector. Yusuf suggested that trade regulation should be managed by fiscal authorities in collaboration with relevant government agencies like the Ministry of Industry, Trade and Investment, the Ministry of National Planning, and the Nigeria Export Promotion Council. He emphasized the importance of product-specific evaluations to determine the readiness of industries for value addition. The conversation touched on Nigeria's trade relations with global partners and the significance of leveraging comparative advantages. Yusuf underscored the role of regional agreements, particularly within ECOWAS and the African Continental Free Trade Area, in shaping Nigeria's trade policies. Despite global economic uncertainties and challenges such as disrupted supply chains and declining commodity prices, Yusuf highlighted the relative stability of Nigeria's bilateral trade relationships. He acknowledged the risks posed by external factors like oil price fluctuations but also noted the country's resilience in the face of ongoing trade dynamics. Overall, the interview shed light on the complexities of trade policy and the importance of strategic decision-making to support Nigeria's economic interests.