In a decisive move aimed at promoting transparency and accountability in Nigeria’s industrial funding mechanisms, the House of Representatives has resolved to investigate alleged irregularities in the remittance of a two per cent import surcharge to the Raw Materials Research and Development Council (RMRDC). The probe follows growing concerns over underfunding and mismanagement of funds intended to support the Council’s crucial mandate.
The motion to initiate this investigation was moved by Mr. Mustapha Aliyu, a Kaduna State lawmaker, during Wednesday’s plenary session. Aliyu highlighted that the RMRDC, established in 1987 under the Science and Technology Act and later updated in 2022, plays a vital role in reducing Nigeria’s reliance on imported raw materials by promoting research, development, and utilisation of indigenous materials to stimulate industrial growth and diversify the economy.
The 2022 amendment to the RMRDC Act notably increased the import surcharge from one to two per cent, aiming to bolster the Council’s funding. However, Aliyu expressed alarm that the actual remittances received by the RMRDC amount to a mere 0.05 per cent — a fraction of what is mandated by law. This significant shortfall has raised serious questions regarding the accuracy and transparency of surcharge collections and disbursements by the Nigeria Customs Service (NCS), Federal Ministry of Finance, and the Budget Office.
“The House is deeply concerned that the persistent irregularities and lack of clear accountability in the remittance process violate the provisions of Section 12(1)(b) of the RMRDC Act, 2022,” Aliyu stated. “These discrepancies undermine the Council’s ability to execute its statutory functions effectively and consequently hamper national development.”
The House, presided over by Speaker Tajudeen Abbas, formally urged the Federal Ministry of Finance and Nigeria Customs Service to provide a detailed account of the methodology used in calculating and remitting the two per cent surcharge. The lawmakers stressed the need for a transparent framework for surcharge collection and remittance in strict compliance with the RMRDC Act.
Furthermore, the Federal Ministry of Finance was directed to ensure the immediate calculation and remittance of all arrears due to the Council. The move is expected to strengthen the RMRDC’s capacity to fund research projects that promote local raw materials utilisation, an essential component of Nigeria’s broader industrialisation agenda.
The RMRDC’s role is central to Nigeria’s vision of economic diversification and industrial growth. By developing local raw materials, the Council reduces the country’s dependence on imports, fosters job creation, and stimulates innovation in manufacturing. Proper funding through the import surcharge is critical for these objectives.
Experts note that the failure to remit the full surcharge amount translates into underfunded projects, stalling progress in key sectors such as agriculture, mining, and manufacturing. Moreover, lack of transparency erodes public trust in the government’s commitment to economic reforms.
An economic analyst, Dr. Ifeoma Nwankwo, told The PUNCH, “Ensuring that funds collected as import surcharges reach the RMRDC is not just a regulatory compliance issue but a strategic imperative for Nigeria’s industrial future. The probe by the House could be a game-changer if it results in proper oversight and accountability.”
This investigation aligns with broader legislative efforts to improve transparency in public finance management. It is also expected to prompt closer scrutiny of the roles of the Nigeria Customs Service and Federal Ministry of Finance in revenue collection and disbursement.
Stakeholders in the industrial and manufacturing sectors have welcomed the probe. The President of the Manufacturers Association of Nigeria, Dr. Segun Ajayi-Kadir, commented, “Adequate funding of institutions like RMRDC is vital. We hope the investigation will uncover bottlenecks and help restore proper funding flows.”
The House of Representatives’ probe marks an important step towards addressing systemic gaps that have long affected Nigeria’s industrial policies. It is hoped that the outcome will reinforce the integrity of the surcharge system and accelerate the country’s path towards self-sufficiency in raw materials production.
As the investigation unfolds, all eyes will be on the Nigeria Customs Service and the Federal Ministry of Finance to provide comprehensive data and collaborate fully with the lawmakers. Transparency and accountability will be crucial in ensuring that the two per cent surcharge serves its intended purpose of empowering the RMRDC.
This development signals the Nigerian government’s renewed commitment to oversight, efficient resource allocation, and the long-term goal of economic diversification through local content development.