Why National Assembly should discontinue deliberation on raw materials bill-CPPE boss

By allcitynews.ng

When the leadership of Centre for the Promotion of Private Enterprise (CPPE) expressed his displeasure over National Assembly’s move to add more burden to Real sector that has already been saddled with current economic hardship, he is reminding everyone in the Assembly that since the growth and development of people is the highest calling of policy makers, coming out with draconian laws would bring more harm than good.

The Director/CEO of CPPE, Dr. Muda Yusuf, pointedly stated that the bill will bring more damage than repair to the economy.

The CPPE  helmsman cited the Raw Materials Research and Development Council (RMRDC) Bill currently before the National Assembly, as reason for his rejection of the plan.

Reiterating his concerns over the Raw Materials Research and Development Council (RMRDC) Bill currently before the National Assembly, Yusuf disclosed that the bill proposes to mandate a minimum of 30% local value addition for primary product exports and restrict manufacturers from importing raw materials available in sufficient quantity in the country.

The CPPE believes that the bill has the prospect of creating significant adverse and unintended consequences for Nigerian exporters and manufacturers.

The Director/CEO of CPPE, Dr. Muda Yusuf, who made this known, noted that the policy,  if allowed to sail through is lacking the power to ensure a balance between the interests of exporters of primary products and processors.

“A robust study on domestic raw materials availability is imperative before legislating on a ban on raw materials for manufacturers.” Dr. Yusuf noted.

The CPPE has raised several questions regarding the bill. What metrics would be used to determine the minimum 30% value addition? Who will determine and give approval for the export to proceed?

What study has been done to determine the local processing capacity for each category of primary products currently being exported?

What metrics would be used to determine raw materials that manufacturers would be allowed to import into the country?

What is the effective time frame for implementation? Is it within the mandate of the RMRDC to be promoting the ban of exports or imports?

The Centre describes the bill as a simplistic proposition that has not taken into account the critical challenges of manufacturing, processing, and value addition in the Nigerian economy.

“The contextual understanding of these challenges is critical to enrich the conversations around the raw materials bill.

“Most agro-processors have collapsed due to challenges such as productivity and competitiveness, production costs, energy costs, logistics costs, bureaucratic bottlenecks, exchange rates, and multiple taxation.” The statement read.

The CPPE warns that if passed, the bill would create new corruption gateways in the bureaucracy as businesses will now be burdened with another chain of approvals.

“Additionally, the issue of export or import ban is not within the remit of the Raw Materials Research and Development Council or the Ministry of Science and Technology.

“It is in the realm of fiscal policy, which is within the purview of the Ministry of Finance, working in collaboration with the Ministry of National Planning and the Ministry of Industry, Trade, and Investment.”

The CPPE emphasizes the importance of policy coordination and coherence, stating that the Nigeria Export Promotion Council (NEPC) must be involved in determining the implications for the non-oil export sector and the manufacturing sector and the economy as a whole.

According to the Centre, Import and Export regulations are not often legislated; they are trade policy issues that are calibrated from time to time by the fiscal policy authorities in light of prevailing economic conditions.

The CPPE advises the RMRDC to withdraw the bill and focus on its core mandate of raw materials research to offer the most cost-effective raw materials option for manufacturers.

Likewise, he urged the National Assembly to discontinue deliberations on the bill, stating that the bill has a very weak value proposition and that the council’s involvement in trade policy matters is an aberration.

The Centre emphasized that the bill’s passage would have far-reaching consequences for the Nigerian economy, including job losses and reduced competitiveness.

The CPPE’s concerns highlight the need for a more nuanced approach to promoting local value addition and raw materials development, one that balances the interests of exporters and manufacturers while addressing the critical challenges facing the Nigerian economy.

Do you wish to ADVERTISE Your Brand Or Need Event Coverage?
Or Have Breaking story with pictorial evidence? Or wants to assist us by DONATIONS?
kindly contact us via  09159744240/allcitynews86@gmail.com

Goal of allcitynews.ng/allcitynews.blog:-
To interface between policy makers & general public, be most influential, informative and reliable issues-based online newspaper.

Disclaimer:
Comments expressed here do not in anyway reflect the opinions of allcitynews.ng or any employee thereof.