A nation’s wealth is not measured by the extent of abundance of its natural endowments yet untapped, but by the expansion of its competences and potentials for deliberate and sustainable input sourcing of same for manufacturing, industrialization and growth. The Director General Raw Materials Research and Development Council (RMRDC) Professor Hussain Doko Ibrahim explains. BINTA SHAMA reports.
Globally, manufacturers are consolidating their strides in sourcing raw materials locally in order to maximize their profits and on most cases, reduce their foreign exchange demands and save their business from the volatility of the foreign exchange markets. This became starker aftermath of the Nigerian land border closure that increased impact on utilization of local raw materials by manufacturers.
Crude oil collapses the industrialised economy
Despite the above, about 50%, of industrial raw materials in Nigeria, are imported when local sourcing of industrial raw materials would reduce import bill, foreign exchange requirements, increase growth of related local economic sectors and provide employment opportunities and lead to production of secondary raw materials thereby guaranteeing increased exports earnings for the country.
This is sure enough in keeping with efforts of successive governments that have feverishly pursued policies to turn around the nation’s economic fortunes by revamping the industrial sector for performance. Consequently, emphasis of past governments have dwelt on effectively tackling the complexities of industrialization in a highly competitive global economy, gaining effectiveness and minimizing costs by sourcing raw materials for production locally.
Consequently, several homegrown and even imported economic development policies have been adopted by successive governments – each having a bearing on the industrial sector- ranging from import substitution strategy (ISS)) through indigenization, to the Structural Adjustment programme (SAP). But none could seemingly purvey the required elixir and reset the economy for expansion and growth.
It seemed like the more policies we had, the further away we drifted from the desired industrialization. The discovery of crude oil, which instantly became the primary export commodity and major foreign exchange earner, in Oloibiri, Bayelsa state, in the 60s, also helped to collapse all attempts by government to deliver an industrialised economy.
RMRDC spearheading the nation’s manufacturing sector
Nigeria is known for its enormous raw materials and solid minerals endowments, but only 46.71 percent of raw materials is sourced within the country, with local manufacturers now outsource raw materials from other African countries, thereby creating a displacement which directly affects workers in the intermediate segments of the local economy.
The manufacturing sector is Nigeria’s major focal point for economic development, as the Raw Materials Research and Development Council (RMRDC) is for information on raw materials development and utilization in Nigeria. Having been earlier established by Act 39 of 1987 spearhead the development and utilization of industrial raw materials in Nigeria, one is not surprised to find the Council leading the effort in propping up the nation’s manufacturing sector as a pillar upon which economic growth and industrialization of the country can be hinged. The Council has therefore unrelentingly pressed on, through its policies and action programmes, to extract greater performances, in terms of contributing to the GDP, to enhance access to raw materials by the manufacturing industries.
Therefore, the establishment of the Raw Materials Research and Development Council (RMRDC) was in response to the clarion call by the private sector for government intervention on the over reliance on imports by Nigeria Manufacturing industry for the supply of its raw materials, processing equipment and spare parts.
The Federal Government, through the then Federal Ministry of Industry (FMI) in collaboration with the Manufacturers Association of Nigeria (MAN) and other stakeholders convened, a National Workshop on Raw Materials for Nigerian industries in July 1983. The outcome of the workshop led to the formulation of a policy for the establishment of RMRDC by Decree (Now Act) No.39 of December 17, 1987 to develop local raw materials and co-ordinate research efforts especially in relation to raw materials acquisition, exploitation, conservation and development.
The Council commenced operations on February 10, 1988 and immediately embarked on Techno Economic Survey to determine the status of Nigeria’s natural resources vis-à-vis occurrence, production, development and utilization. This exercise revealed the enormous economic potentials available in the country which hitherto was not been utilized. In other words, Nigeria was expending foreign exchange to import raw materials and products which could be sourced locally.
In essence, the Council was established to primarily serve the interest of the industry and the private sector by facilitating the sourcing, development and utilization of local raw materials; Provide information which would enable government to formulate appropriate policies for local raw materials development and utilization taking cognizance of the implications of depletion, conservation or stockpiling; and reduce the dependence and expenditure on raw materials imports, conserve foreign exchange by ensuring increased productivity, capacity utilisation and sustainable industrial growth and ultimately create jobs.
RMRDC, making Nigeria’s manufacturing sector more competitive
In view of the above, the RMRDC had its job cut for it from its inception, in form of determining the status of raw materials availability in Nigeria on state and local government basis, identifying raw materials needs of industries and level of utilization vis-a-vis imported raw materials, and identifying natural cluster and their locations across the country.
The RMRDC as part of its operational modalities consults and partners the organized private sectors of the economy for maximum efficacy. Through some of the umbrella bodies like the Manufacturers association of Nigeria (MAN), the National Association of Small Scale Industries (NASSI), National Association of Small and Medium scale Enterprises (NASME), RMRDC has forged an alliance to improve local capacities among indigenous manufacturing for raw materials processing and value addition.
The Raw Materials Research and Development Council (RMRDC) is a parastatal under the Ministry of Science, Technology and Innovation with the mandate to promote development and utilization of industrial raw materials. It commenced operation in Lagos on 10th February, 1988. It currently operates from its corporate headquarters in Abuja and has presence in 36 states including Abuja. It is today Nigeria’s focal point for the development and utilization of Nigeria’s vast industrial raw materials.
The Council as part of efforts aimed at improving raw materials availability in the country as inputs to industries to boost local manufacturing and productivity, partners with the OPS in the areas of information on raw materials availability and utilization in the country to guide local sourcing activities by the organized private sector.
The RMRDC has also focused its efforts on driving down cost structure of manufacturing to make the Nigerian manufacturing sector more competitive in the global market as well as helping the nation to conserve its foreign exchange reserves by reducing importation through import substitution. We must make hay while the sun shines as a country by looking inwards and confronting the manufacturing challenges that confront local industries thereby making local manufacturing less an expensive venture in Nigeria.
The Council also formulates strategies for encouraging rapid growth of resource-based industries in the country to thrive, as well as providing platforms for capacity building of SMEs located throughout the 36 states of the federation including Abuja.
Report, released by the Director Public Affairs Unit RMRDC Mr. Chuks Ngaha