RAW MATERIALS DELETION PROGRAMME

B. A. ALUKO

Raw Materials Research and Development Council

Presented at the Summit on the State of Local Raw Materials Research and Development in Nigeria held at the Abuja Sheraton Hotels and Towers.

           
Oct. 31st - Nov.1st 2007

BACKGROUND

The Raw Materials Deletion Programme as a policy instrument was prompted by the following:

*          Need to conserve foreign exchange.

*          Need to encourage the development and utilization of local raw materials.

*          Need to build up local technological capacity for processing local raw materials.

*          Need to satisfy local market opportunities.

*          Need to promote investments.

*          Need to create jobs locally.

*          Need create a demand pull on agricultural and solid minerals industry
           and impact on the development of the rural areas

The Programme was one of the major outcomes of deliberations between the Federal Government and the Organized Private Sector (OPS) in 1983.

It was designed to ensure gradual replacement of imported raw materials with local substitutes.

IMPLEMENTATION STRATEGY


Wide consultations with all stakeholders including the following:

-           Primary producers of raw materials, farmers, miners, etc.

-           Consultation resulted in identification of 108 raw materials which may be deleted

            from import list over periods of 0-7 years.

 -          This effort contributed to formulation of fiscal policies.

-           Various items were placed on the import prohibition list.
           
-           Import duties were imposed on many other raw materials to protect local

alternatives.


 RECOMMENDATIONS

In order to realize the lofty objectives of this Programme, the following recommendations are suggested:

-           Provision of Technical assistance by manufacturers to farmers or farming groups

productivity improvement strategies.

 -          Effective system of communicating government policies to primary raw  materials
           
            producers.

-           Need for targeting research and development efforts at micro small medium scale
           
            enterprises of the (MSMEs) by the Research Institutions.  

*          Re-invigoration of the Industrial Extension Service Scheme at the Federal

and state levels 

*          Establishing Credit Guarantee Schemes for MSMEs at the State government

levels 

*          Developing a package of investor – friendly incentives and legislation to

attract MSMEs  at the state and local government levels.

*          Up-to-date survey of industrial raw materials providing current data such as prices,
           
           adequacy in terms of quantity and quality and challenges industries face in sourcing raw

           materials locally.

*         Replacement of imported raw materials opens up vest investment

           opportunities which require vigorous promotion by relevant agencies to attract

           investors.

*          Provision of technical support such as engineering infrastructure to small fabricators of
          
            machinery and equipment

            

The Raw Materials Deletion Programme would form part of a Raw Minerals Policy for Nigeria being put forward by RMRDC and other stakeholders.