Nigerian Business Group Opposes Raw Materials Bill

Nigeria's Centre for the Promotion of Private Enterprise has cautioned against a bill on raw materials currently under consideration by the National Assembly.

The organisation said the proposed Raw Materials Research and Development Council legislation risks damaging consequences for key economic sectors. Nigeria's economy relies heavily on exports of agricultural goods and natural resources, while its manufacturing base has faced persistent challenges.

The warning highlights concerns that the measure could worsen conditions for businesses already operating under difficult circumstances. Exporters play a significant role in generating foreign exchange for Africa's most populous nation, which has struggled with currency pressures and inflation in recent years.

Local manufacturers have long cited high production costs and inconsistent policy as barriers to growth. Many depend on imported inputs, making any regulatory changes in raw materials supply chains particularly sensitive.

The Centre for the Promotion of Private Enterprise regularly comments on policies affecting the private sector in Nigeria. Its latest intervention focuses on potential unintended effects of the bill on competitiveness.

Nigeria's legislature has been reviewing various economic bills as part of efforts to strengthen domestic industry and reduce reliance on imports. However, business groups often raise objections when they perceive risks to existing operations.

The proposed law aims to support research and development in raw materials, an area the government has identified as strategically important. Yet the private enterprise centre argues that its current form may undermine rather than bolster the very sectors it seeks to help.

Based on reporting by Nairametrics.