Connect with us

Business

RMRDC Leads Drive for Backward Integration for Survival of Nigeria’s Industrial Economy

Published

on

The Raw Materials Research and Development Council (RMRDC) has renewed calls for Nigeria to embrace backward integration and local sourcing of raw materials as the only viable pathway for industrial survival and sustainable national growth.

Speaking at the 37th Annual General Meeting (AGM) of the Manufacturers Association of Nigeria (MAN), Anambra, Ebonyi, and Enugu States branch held at the International Conference Centre, Enugu, with the “Exploring Opportunities for Backward Integration and Local Sourcing of Raw Materials for the Manufacturing Sector”
the Director General/CEO of RMRDC, Prof. Nnanyelugo Ike-Muonso, said Nigeria can no longer afford to export its natural wealth in raw form while depending on imported finished goods at exorbitant costs.

According to him, this paradox has moved beyond being an economic inefficiency to becoming an existential threat to national stability and industrial development. “Nigeria cannot survive exporting its raw materials only to import finished goods at high costs,” Ike-Muonso declared. “In the first half of 2025 alone, Nigeria spent a staggering N3.53 trillion importing raw materials. That is N3.53 trillion not circulating in our economy, not creating jobs, and not building resilience in our supply chains.”

The DG emphasized that backward integration and local sourcing are not optional, but essential for the survival, stability, and sustainable growth of Nigeria’s manufacturing sector. He described them as the roadmap to national industrial independence. He noted that over the years, the country’s import-dependent manufacturing model had collapsed, leading to severe foreign exchange pressure and capital flight. “Within the first half of this year alone, Nigeria lost N2.6 trillion in costs and saw foreign investments shrink to a mere $129.9 million because we continue to build our industrial growth on foreign supply chains,” he said.

Prof. Ike-Muonso announced that the RMRDC 30% Value Addition Bill, currently awaiting Presidential Assent, would transform Nigeria’s industrial landscape. The bill mandates at least 30% local value addition to raw materials before export, ensuring that the nation’s natural resources are processed and manufactured locally. He said the bill, when passed, would inject $7.5 billion into the GDP, create over 250,000 new jobs by 2030, and save $3.7 billion in annual import costs, positioning Nigeria as a regional value-chain leader.

“This legislation is not a restriction but a protection,” he explained. “It guarantees that the raw materials manufacturers need, such as lead, zinc, cocoa, and sesame, remain available for local use instead of being shipped abroad.”

The Governor of Enugu State, Dr. Peter Mbah, represented by his Deputy, Barr. Ifeanyi Ossai, commended RMRDC for its leadership in driving industrial policy reforms through the proposed 30% Value Addition Bill. The Governor described the bill as transformational and one that would reposition Nigeria’s economy on a path of value creation and sustainable growth.

“The RMRDC’s 30% Value Addition Bill is a game-changer that will transform Nigeria’s economy from dependency to productivity,” Ossai said. “I urge financial institutions, especially development banks such as NEXIM Bank, to prepare adequately to support this reform. Access to credit facilities at single-digit interest rates remains a major challenge and must be addressed to make the bill’s implementation successful.”

He further applauded Prof. Ike-Muonso for his insightful keynote presentation and the Council’s consistent efforts in promoting industrial growth through research, innovation, and strategic collaboration.

Highlighting the untapped opportunities across the South-East, Prof. Ike-Muonso said that RMRDC has mapped out raw material corridors across Nigeria to enable industries access local inputs within short distances. He pointed out that Ebonyi State sits on a wealth of minerals such as lead, zinc, limestone, kaolin, and feldspar; Anambra State is endowed with cassava and maize for starch and glucose production; while Enugu State has vast reserves of clay and oil palm that can drive the ceramics and vegetable oil industries.

“These are not theoretical potentials; they are tangible assets waiting for the marriage of policy and capital,” he said. “We must act decisively and quickly if we are to safeguard our industrial future.”

He urged state governments to champion the creation of raw-material corridors, develop infrastructure, power, and logistics systems, and establish shared processing facilities. “RMRDC will not be a spectator,” he assured. “We are ready to be your technical partner, providing data, investment, and advisory support.”

The Chairman, MAN Enugu, Ebonyi, and Anambra states branch, Dr. Adaora Chukwudozie, described backward integration and local sourcing as the surest path to lowering production costs, stabilizing supply chains, and expanding industrial capacity. “With over 65% of production costs tied to imported inputs, this model is no longer sustainable,” she stated. “The RMRDC’s commitment to local sourcing is exactly what Nigeria needs to strengthen MSMEs, create jobs, and boost competitiveness.”

The 37th MAN AGM also witnessed the presentation of awards to Prof. Ike-Muonso alongside prominent business leaders, including the Cubana Group and BLord Group, in recognition of their contributions to industrial and economic development. The event, which combined high-level deliberations with rich cultural performances and musical entertainment, was widely described as both insightful and transformative, setting a renewed tone for Nigeria’s industrial future.

Continue Reading

Business

Turning Africa’s Raw Materials Into Wealth: The ARMS 2026 Industrial Agenda

Published

on

By Joel Ajayi

For decades, Africa’s vast natural resources have powered industries and economies far beyond the continent, while many African countries have remained largely exporters of unprocessed commodities and importers of finished products.

That familiar pattern is now coming under renewed scrutiny as policymakers, researchers, investors and industrialists seek to change the direction of Africa’s resource economy.

At the centre of that conversation is the second edition of the Africa Raw Materials Summit (ARMS 2026), scheduled for October 19 and 20 at the Abuja Continental Hotel, Abuja, under the theme: “From African Feedstock to African Factories.”

Organised by the Raw Materials Research and Development Council (RMRDC), the summit is being positioned as more than another gathering of policymakers and industry stakeholders. It is intended to provide a platform for confronting the structural challenges that have kept African raw materials largely disconnected from local manufacturing.

Africa has for years operated largely within a “pit-to-port” economic model, exporting raw materials while importing expensive finished products.

Speaking at a press conference ahead of the summit on Tuesday in Abuja, the Director-General and Chief Executive Officer of RMRDC, Prof. Nnanyelugo Martin Ike-Muonso, said the event would bring together policymakers, investors, researchers, technology providers and industrialists to develop practical strategies for transforming Africa’s abundant natural resources into industrial wealth.

The challenge, therefore, is not simply the abundance of resources, but the continent’s ability to transform those resources into industrial value, employment, technology and wealth within Africa.

Nigeria alone, according to the RMRDC, has more than $582.4 billion in documented non-renewable natural resources, while the wider continent possesses substantial deposits of critical minerals, agricultural raw materials and industrial feedstock.

Yet, the benefits of this resource endowment have often been constrained by inadequate processing capacity, weak infrastructure, limited technology, financing gaps and fragmented regional value chains.

From Dialogue to Industrial Action

ARMS 2026 builds on the maiden edition held in May 2025, which attracted more than 1,000 delegates from across the world.

The inaugural summit also witnessed the unveiling of the Ten-Year Raw Materials Transformation Roadmap (2025–2034) by the Minister of State for Industry, Senator John Owen Enoh.

The roadmap was designed around areas including technological capability, climate-resilient processing and backward integration, establishing a policy framework for greater domestic utilisation of Africa’s raw materials.

The second edition is expected to move the conversation further by bringing policy, capital, technology and industrial stakeholders around practical mechanisms for turning raw materials into locally manufactured products.

One of the major proposals highlighted by the RMRDC is the 30 per cent Mandatory Value Addition Bill, which seeks to establish a statutory minimum level of value addition to Nigerian raw materials before export.

The Council says the proposed framework could support job creation, import substitution, foreign-exchange conservation and increased manufacturing contribution to the economy.

Building the Infrastructure for Value Addition

The industrial transformation envisaged by ARMS 2026 goes beyond legislation.

A major concern is the “missing middle” between where raw materials are produced and where factories are located.

Poor transportation networks, inadequate cold-chain facilities, weak rural roads, limited testing and certification infrastructure and border-related delays can make locally sourced materials more expensive and less competitive.

Consequently, logistics and infrastructure constitute one of the five principal pillars of the summit.

The objective is to develop more reliable corridors connecting farms and mines with processing centres and manufacturing facilities, thereby reducing losses and improving the movement of industrial inputs.

The Digital Dimension

Technology is also becoming an important part of the Council’s strategy.

The RMRDC says it has developed the Nigeria Integrated Information Statistical System for Raw Materials and Products (NISSRAMP), described as a digital repository containing information on feedstock deposits, specifications, production outputs and industrial absorption rates.

The Council has also highlighted its transition towards paperless operations and its certification as a Data Controller/Processor of Major Importance by the Nigeria Data Protection Commission.

Such digital infrastructure could provide investors and manufacturers with better information about the availability and characteristics of raw materials while supporting more informed industrial planning.

Turning Waste Into Industrial Inputs

Another major component of ARMS 2026 is the proposed expansion of the circular economy.

The summit will examine how agricultural by-products, mine tailings, scrap metals and biomass can be recovered and reused as inputs for new production processes rather than being treated simply as waste.

The RMRDC argues that such an approach could lower raw-material costs while supporting more sustainable and climate-resilient manufacturing systems.

For Africa, where industrial expansion must increasingly balance economic development with environmental considerations, waste industrialisation could become an important part of the continent’s manufacturing conversation.

From National Production to African Value Chains

The African Continental Free Trade Area is another important element of the summit’s agenda.

The RMRDC sees AfCFTA as an opportunity to create regional value chains in which raw materials sourced in one African country can be processed and supplied to manufacturers in another.

Under such a model, Africa would move beyond simply exporting commodities to external markets and develop stronger internal networks for supplying chemicals, refined minerals, agricultural inputs and other industrial materials across national borders.

This approach places regional integration at the heart of Africa’s industrialisation strategy.

Bridging Research and Capital

A recurring weakness in many developing economies is the gap between research and commercialisation.

Innovations may emerge from universities, research institutions and laboratories without receiving the financing, equipment or market connections required to become commercially viable.

ARMS 2026 intends to address that gap through technology commercialisation and capital linkages, connecting research outputs with investors, development finance institutions and industrial off-takers.

The RMRDC has also cited partnerships with the Bank of Industry for commercial-scale post-harvest processing and a South-South technology-transfer partnership with the National Innovation Centre par Excellence in Shanghai, China.

A Larger Industrial Conversation

The scale of ARMS 2026 is expected to be significantly larger than the maiden edition.

The organisers project more than 1,800 delegates from all 54 African countries and global industrial partners.

The programme will feature high-level policy dialogues, technical panels, an advanced raw materials and technology exhibition, industrial site visits and the African Raw Materials Industry Awards.

The exhibition, in particular, is expected to showcase locally fabricated processing machinery, advanced domestic materials, green chemicals and engineered commercial inputs.

Beyond the speeches and exhibitions, however, the real significance of ARMS 2026 will ultimately depend on what happens after the summit.

Africa’s challenge has never been a shortage of raw materials. The more difficult question has been how to transform those resources into factories, products, skilled employment, technology and sustainable economic opportunities.

For Nigeria and the rest of the continent, the proposed shift from “pit-to-port” to “feedstock-to-factory” therefore represents a broader debate about the future structure of African economies.

ARMS 2026 seeks to place that debate firmly on the industrial agenda — with value addition, technology, finance, infrastructure, circular production and regional trade at the centre.

If the commitments and partnerships generated by the summit translate into measurable industrial activity, the event could provide another platform for Africa to examine how its enormous resource base can support stronger domestic manufacturing.

The message from the organisers is clear: the continent’s raw materials should not only leave African soil as commodities; they should increasingly become the foundation for African industrial production

Continue Reading

Trending

error

Enjoy this blog? Please spread the word :)