RMRDC RAW MATERIALS RESEARCH AND DEVELOPMENT COUNCIL LOCAL

RMRDC RAW MATERIALS RESEARCH AND DEVELOPMENT COUNCIL LOCAL SOURCING OF RAW MATERIALS FOR INDUSTRIAL GROWTH AND DEVELOPMENT IN NIGERIA ENGR. (PROF. ) A. P. ONWUALU, FNSE, FNIM, FAS, FAEng. D I R E C T O R - G E N E R A L, RAW MATERIALS RESEARCH AND DEVELOPMENT COUNCIL (R M R D C) AND CHAIRMAN, COMMITTEE OF DIRECTORS OF RESEARCH INSTITUTES OF NIGERIA (CODRI) NIGERIAN ACADEMY OF ENGINEERING (NAE) PUBLIC LECTURE LAGOS, NIGERIA 27 TH SEPTEMBER, 2013

Outline of Presentation 1. NIGERIAN ECONOMY & MANUFACTURING SECTOR 2. CLASSIFICATION OF INDUSTRIAL RAW MATERIALS 3. HISTORICAL DEVELOPMENT OF LOCAL SOURCING OF RAW MATERIALS 4. CURRENT STATUS OF LOCAL SOURCING 5. CHALLENGES 6 STRATEGIES FOR SUSTAINABLE LOCAL SOURCING OF RAW MATERIALS 7 CONCLUSIONS & RECOMMENDATIONS RMRDC………. Adding Value to the Nation's Natural Resources 2

NIGERIAN ECONOMY • Crude oil and primary commodity-based (Resource Rent as main Source of Revenue) • Agrarian ( subsistent farming, poor post harvest system, poor value addition) • Import Dependent • Labour-Intensive Production System • Low Technology Input • Need for competitiveness and knowledge driven economy • Need for diversification. RMRDC………. Adding Value to the Nation's Natural Resources 3

Nigeria: Rich in Natural Resources, Poor in Technology Ø Agricultural Solid Mineral Oil and gas Renewables (Solar, wind, biomass, etc) Water and Land Forestry Human Visit National Raw Materials Information System (www. rmrdc. gov. ng ) Ø These in their natural form do not create wealth, until technology is used to transform them. RMRDC………. Adding Value to the Nation's Natural Resources 4

Contribution of various Sectors to the GDP of Nigeria SECTOR PERCENTAGE CONTRIBUTION TO GDP 1 Agriculture 39. 24 2 SECTOR % CONTRIBUTION TO GDP 7 Finance and Insurance 3. 45 Crude Petroleum and 14. 71 Natural Gas 8 Real Estate 1. 75 3 Building and Construction 2. 09 9 Post and Telecommunications 5. 71 4 Wholesale and Retails 20. 66 10 Solid Minerals 0. 36 5 Hotel and Restaurant 0. 47 11 Business and other Services 0. 92 6 Manufacturing 4. 16 12 Others 6. 68 Source: National Bureau of Statistics (2012) & African Development Bank (2012) RMRDC………. Adding Value to the Nation's Natural Resources 5

The Manufacturing Sector in Nigeria Ø Low level of local innovation and competitiveness Ø Poor infrastructure ( General and Engineering) Ø Lack of sustainable local raw materials sourcing , thus depends on suffocating imports of raw materials and technology. Ø Recent upsurge in investments due to favourable government policies and investment climate Ø Do we have the raw materials to sustain existing and new industry. RMRDC………. Adding Value to the Nation's Natural Resources 6

Some Recent Major Investments in Nigeria RMRDC………. Adding Value to the Nation's Natural Resources 7

WHY EMPHASIS ON RAW MATERIALS ? ENERGY RAW MATERIALS PLANT & EQUIPMENT PRODUCTION MANUFACTURING & SERVICES HUMAN CAPACITY, SKILLS GOODS & SERVICES WASTES CAPITAL & OTHER INPUTS RMRDC………. Adding Value to the Nation's Natural Resources 8

What are Industrial Raw Materials ? Ø Materials for use as industrial inputs to produce intermediate or final products. Classification Ø Primary (Raw) Materials (Commodities) Ø Intermediate (Raw) Materials Ø Advanced (Raw) Materials Ø Wealth =f(type of raw materials) RMRDC………. Adding Value to the Nation's Natural Resources 9

Classification of Raw Materials Pre – Primary Processing Ø Natural Resources (agricultural, minerals) Ø For agricultural resources - cleaning, sorting, destoning, grading, etc at farm gate. Ø For minerals – simple crushing at quary sites Ø Technology required is low and simple but associated with inefficiency, low quality, low output and drudgery Ø Product of Pre- Primary Processing - Primary Raw Materials RMRDC………. Adding Value to the Nation's Natural Resources 10

Primary Processing : - Limited Alteration In Physical and Material Nature Ø Minerals - Beneficiation –e. g. mineral floatation, bleaching, drying, size reduction, etc Ø Agriculture – milling, liquid extraction(oils- oil seeds, juice - fruits, milk, vegetable), drying. Ø Product of Primary Processing -intermediate Raw Materials e. g. cassava chips, industrial starch, vegetable oil, Talcum Powder. Technology required – simple, low energy requirement, middle level manpower. Ø Packaging required - simple Ø National Capability to fabricate technology : Minerals – 45%; Agriculture – 60% RMRDC………. Adding Value to the Nation's Natural Resources 11

Intermediate Processing : - major alteration in physical and chemical Properties Ø Involves further processing of intermediate raw materials Ø Complex chemical or physical processes. Mineral : e. g phosphate chemicals from phosphate dust; quicklime/hydrated lime from Calcium Carbonate. Ø Agriculture e. g. Fruit Juice Concentrates from fruits, ethanol from cassava starch/chips, Vegetable oil from palm oil, Butter from Ø Product of Intermediate Processing - Secondary Raw Materials e. g ethanol, fruit juice concentrates, quicklime/hydrated lime. Ø Technology and packaging required – complex Ø Current National Capabilty to fabricate Technology RMRDC………. Adding Value to the Nation's Natural Resources 12 : Mineral – 2%, Agriculture – 5%

Secondary Processing : Ø Processing secondary raw materials into tertiary raw materials or final products Ø Agriculture : e. g Vegetable oil – oleochemicals; ethanol – acids and ethanoate, physical starch – modified starch products Ø Minerals : e. g. Quicklime to carbonates and Acids – inputs in fertilizer anddrink preservation, processing solvents Ø roduct – Tertiary Raw Materials Ø Technology required – Moderate Ø Packaging required – Moderate Ø Current National Capability to fabricate Technology : Mineral – 2%, Agriculture – 5% RMRDC………. Adding Value to the Nation's Natural Resources 13 Ø

Tertiary Processing Ø Processing secondary raw materials into complex products : Ø Advanced Materials (with intelligence) Ø Space and ICT products Ø Nuclear products Ø Synthetic products Ø Nano materials Ø Technology and packaging required – complex Ø Current National Capabilty to fabricate Technology : Mineral – 0%, Agriculture – 0%. RMRDC………. Adding Value to the Nation's Natural Resources 14

S/N 1. 2. 3. SECTOR Beer Brewery Industry Soft Drinks Cereals and Bakery Products 4. Dairy Products 5. Cocoa and Chocolate Products 6. Wine and Distillers 7. Animal Feed 8. Tea and Coffee 9. Sugar and Sugar Confectionery 10. Fruits and Vegetable Products 11. Spices and Flavouring 12. Meat and Fish Products 13. Margarine and Edible Oils 14. 15. 16. Root and Tubers Products Flour Millers Miscellaneous Source: PRIMARY Barley, sorghum, maize, rice Wheat, maize sorghum, cassava flour, starch, other cereal flour Fresh milk/Milk powders SECONDARY Sugar, enzymes Sugar, enzyme TERTIARY Hops and additives Concentrates Salt, flavor additives, vitamins Milk fat or vegetable Flavours, vitamins fat, butter oil, enzyme, dextrose Cocoa powdered, milk, sugar Egg powder glucose, corn starch Grape fruits, molasses, palm wine, Other fruits Preservatives concentrate, flavouring Maize, soybean, cassava, oil seed, Other cereals, offals, Supplements (vitamins cake, spent grains additives and Minerals) Teal leaves, coffee beans, lemon grass Sugarcane, glucose, cassava starch Fruits, vegetables, fruit concentrates Hydrolysed vegetables, nitrates, locust bean, pepper, ginger Cattle, beef fish, pork, poultry, shrimps Chicory - Gum Arabic, enzyme Essential oils, sugars Snail, oyster, games Oil seeds (groundnut, soybean, sun flower, oil palm etc. ) Yam, cassava, Irish potato etc. Wheat, maize, sorghum etc. Plantain, banana, sweet corn, other staple food Babajide (1998). Nigeria’s Food and Industrial Materials - Colouring, flavourings, essential oils Flavourings preservatives Flavours, extract of spices from leaves Nitrates, extenders, additives, vegetable oil, preservatives Preservatives RMRDC………. Adding Value to the Nation's Natural Resources 15

HISTORICAL PERSPECTIVE OF RAW MATERIALS SOURCING IN NIGERIA Colonial Policy (before 1960) Ø Colonial regime –policy promoted exports of raw materials to oversea industries for processing Ø Stimulated the production of such industrial raw materials as : palm oil and kernel, cocoa, cotton, groundnut, rubber, coal, tin, etc Ø result was that export trade in these raw materials(commodities) soon became the dominant feature of the colonial economy. - RMRDC………. Adding Value to the Nation's Natural Resources 16

Nigerian Government Policy (Indigenous Initiatives) – 1960 - 1986 Ø 1960’s - Import Substitution industrialization Ø From Mid 1970’s – Resource – Based Industrialisation, emergence of government owned industries (cement, paper, vehicle assembly plant), Increase in public sector investment, supported by large crude oil export and government revenues; Most of the industries depended on import of raw materials. Ø From 1981 - Collapse in World Oil Market and economic crisis : Balance of payment problems; debt-servicing problems; decline in import capacity; decreased capacity utilization Ø 1986 - Structural Adjustment Programme (SAP ) • Favoured manufacturing with high domestic value added; Did not favour assembly – type manufacturing which depended on heavy imports. RMRDC………. Adding Value to the Nation's Natural Resources 17

Ø New sets of local sourcing strategy was established Ø Setting of minimum local sourcing targets for some industrial sub-sectors : • Soft Drinks and breweries - 100% • Agro-food industries - 80% • Agricultural processing industries - 70% • Chemicals - 60% • Petrochemicals and machine tools - 50% RMRDC………. Adding Value to the Nation's Natural Resources 18

To Achieve the Targets Ø Ist – Public R&D system was restructured - RMRDC WAS CREATED IN 1988, and a number of other parastatals. Ø 2 nd – Government established special incentives for encouraging domestic industries to engage in R&D - tax relief of up to 120 percent of expenses on R&D, provided that such R&D activities are carried out in Nigeria and are connected with a business from which income or profit is derived; - tax relief of up to 140 percent of expenses on R&D on local raw materials; and - the abolition, in 1991, of excess profit tax for companies with the expectation that all firms which used to pay this tax would channel the amount into the development and use of local raw materials. Ø Export Expansion Grant (EEG) and other policies (NIPC, NEPC, etc) RMRDC………. Adding Value to the Nation's Natural Resources 19

Policy Impacts : Ø Local sourcing of raw materials Ø Development of indigenous technology options to support local sourcing Ø Development of human capacity Ø Industry “survival instincts” Ø “Capture Opportunity” Syndrome – by creating new markets and opportunities Ø “Adjust or Perish Scenerio” – while others expanded and improved, others just closed shops RMRDC………. Adding Value to the Nation's Natural Resources 20

The Brewery Industry - Range of Products Before and After Policy COMPANY BEFORE POLICY AFTER POLICY DIFFERENCE Nigerian Breweries Plc Star Larger Guilder Larger Maltina Rex Larger Amstel Malta (+2) Guinness Nigeria Plc Stout Larger Harp Larger Merit Larger Satzenbrau Maltina Guinness Satzenbrau Malta Guinness (+2) Sona Breweries Plc Gold Larger Tusk Larger Wilforce Dark Ale Maltonic Gold Larger (-1) Consolidated Breweries Plc “ 33” Larger Beer Hi-Malt (0) Vitamalt Breweries Plc Top Larger Baron Larger Vitamalt Top Larger Baron Larger (-2) Standard Breweries Plc Club Larger Club Malta (0) RMRDC………. Adding Value to the Nation's Natural Resources 21

CURRENT POLICY 2000 -Date • Export Promotion Policy Era ØReformation of EEG ØLed to growth in non-oil exports (from $1 billion in 2006 to $2. 3 Billion in 2010) ØLed to forward integration by exporting companies ØHeavy investment in plants and machinery for value addition ØShift towards export of processed and value added products like cocoa, leather, cashew, sesame seed, sea food, textile, etc RMRDC………. Adding Value to the Nation's Natural Resources 22

CLOSER LOOK AT GOVERNMENT INTERVENTIONS: Establishment Of RMRDC Reasons: • Excessive importation of raw materials • Foreign exchange drain • High cost of imported raw materials • Fluctuation of raw materials supplies leading to frequent closures of industries due to low capacity utilization. • Creation of local technology capacity for RMRDC………. Adding Value to the Nation's Natural Resources processing raw materials. 23

THE RMRDC MODEL ISSUES PROGRAMMES Techno Economic Surveys (RMIS) Raw Material Resources Centres in the States. Journals of Raw Materials Research. Technology Gap R & D Funding. Raw Materials Reference Laboratories. New and Advance Materials. Pilot Plants. Upgrading of Indigenous Technology. Computer Aided Process Equipment Design. Global Knowledge Gap International Collaboration. ACRM-G 77. G 15 Non Metallic Mineral. PACF. WAITRO. Raw Material Supply Gap Boosting Supply of Agricultural Raw materials. Support to Artisanal Miners. Skills Gap Training Workshops. Entrepreneurship Training. Investments Gap Investors Forum Techno Expo, Exhibitions. Catalytic Model Factories. Joint Ventures. Processing Clusters. Excessive Importation of Raw Materials Raw Material Policy. RMRDC………. Adding Value to the Nation's Natural Deletion Programme. Tariff Activites. Resources Information Gap 24

SUMMARY OF RMRDC INTERVENTION RESEARCH AND DEVELOPMENT (R&D) q About 200 research projects funded in knowledge centres and private sector organizations q About 50% has either been commercialized or in the process of commercialization thereby saving foreign exchange and creating jobs Notable amongst the R&D projects are: Ø Development of water borne paints using blends of natural rubber and polyvinyl acetate (patenting process on-going) Ø Development of briquetting machine (patented) Ø Development of calcined kaolin as a partial substitute for Titanium dioxide (Ti. O 2) for the paint industry Ø Development of alternative feed formulation using non-conventional raw materials (commercialized, widely used across the country) Ø Design and fabrication of High Quality Cassava Flour (HQCF) Flash Dryer (still the best design in the market – 10% inclusion in confectioneries) Ø Production of thermostable vaccine for livestock Ø Production of brake pad using palm kernel shell Ø Moringa products Creating Centres of Excellence by Upgrading research facilities and donated equipment/ chemicals to secondary schools, universities, polytechnics and research institutes RMRDC………. Adding Value to the Nation's Natural Resources 25

LOCAL RAW MATERIALS CONTENT DEVELOPMENT – Out of a total of 237 items identified as basic raw materials for the 10 industrial sectors, 108 were selected for deletion. – 60% achievement rate recorded through Council’s efforts in the following: Cassava starch, Kaolin, Barytes, Gypsum, Limestone, Phosphate, etc – Promoted substitution of malted barley with local sorghum (guinea corn) – Initiated the development of a protein sweetener (Thaumatin) as substitute for sugar (user: Pharmadekko) – Development of Fruit Juice Concentrate locally – Development of Wood Seasoning Kiln – Cocoa Processing (Nigeria was processing only 25%, after Council’s intervention, it went up to 75%) INFORMATION GENERATION • RMIS Web portal with modules on raw materials availability, quantity, quality, process technology, prices, user industries, etc • Publications, technical and policy briefs, journals, etc • 36 State Offices with functional Raw Materials Resource Centres • Compendium of Raw Materials on LGA and Ward Bases RMRDC………. Adding Value to the Nation's Natural Resources 26

UPGRADE OF INDIGENOUS TECHNOLOGY Salt processing, Drying and packaging of fruits and vegetables, Kenaf retting, spinning and weaving for the manufacture of jute bags, Kilishi production, Sheanut processing, Acha dehulling and destoning. PIONEER INDUSTRIES Catalyzed investment in raw materials with comparative advantage : Cocoa, talc, groundnut, cashew, kaolin, fruit juice, baryte, phosphate, etc TRAINING ON RAW MATERIALS PROCESSING SKILLS On the average 25 SME training every year on processing different raw materials Capacity building in raw materials development and utilization, e. g. moringa, soya bean products, fish, cassava, RMRDC………. Adding Value to the Nation's Natural Resources 27

Technologies Developed by RMRDC and Partners RMRDC………. Adding Value to the Nation's Natural Resources 28

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RMRDC 25 TH ANNIVERSARY AND TECHNO-EXPO 2013. (PICTURES OF SOME EXHIBITED MACHINES AND EQUIPMENTS ) Horizontal cabinet dryer by national Centre for Agricultural Mechanization (NCAM), Ilorin Palm Kernel Oil Expeller, Tecno-Equip Ltd. Lagos Polythene sealing machine by Blessed Silver Brothers, Benin Exercise Book Ruling Machine by JATECH IND. NIG. LTD, Abuja 4 -Drum 3 -pass rotary dryer, OAU, Ile-Ife and RMRDC………. Adding Value to the Nation's Natural Resources 31

• ARE WE THERE YET? YES AND NO (On the average, we still import over 70% of Raw Materials and Technology) • WHY? RMRDC………. Adding Value to the Nation's Natural Resources 32

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Primary Production - Agro Raw Materials RMRDC………. Adding Value to the Nation's Natural Resources 34

Production – Minerals Raw Materials RMRDC………. Adding Value to the Nation's Natural Resources 35

Production Contd. RMRDC………. Adding Value to the Nation's Natural Resources 36

Production Contd. RMRDC………. Adding Value to the Nation's Natural Resources 37

Peasant Processing System – Drudgery and Inefficiency RMRDC………. Adding Value to the Nation's Natural Resources 38

Peasant Production System RMRDC………. Adding Value to the Nation's Natural Resources 39

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What We Need- Simple Modern Technologies RMRDC………. Adding Value to the Nation's Natural Resources 41

Simple Technologies Contd. RMRDC………. Adding Value to the Nation's Natural Resources 42

Drying Technology – A major challenge in the production of Agro Raw Industrial Raw Materials Floor and Road-side Drying RMRDC………. Adding Value to the Nation's Natural Resources 43

Desired Support RMRDC………. Adding Value to the Nation's Natural Resources 44

Desired Support Contd. RMRDC………. Adding Value to the Nation's Natural Resources 45

Raw Materials and Their Availability RMRDC………. Adding Value to the Nation's Natural Resources 46

Derived Forms of Raw Materials and Their Availability in Nigeria RMRDC………. Adding Value to the Nation's Natural Resources Source : Babajide(1998). Nigeria’s Food and Industrial Materials 47

SUBSTITUTES OR ALTERNATIVES FOR IMPORTED RAW MATERIALS IN NIGERIA RMRDC………. Adding Value to the Nation's Natural Resources Source : Babajide(1998). Nigeria’s Food and Industrial Materials 48

REASONS FOR LOW LOCAL PRODUCTION OF RAW MATERIALS • Infrastructure deficiency(civil and engineering) • Lack of technical skills and training facilities • Adverse effect of globalization – unfair competition and dumping • Poor Fundingand harsh investment climate • Poor Commercialization of R&D outputs • Poor Research-Industry Linkage • Inconsistency in policies and policies that are not globally competitive • Lack of effective backward integration by large companies • Reluctance of some manufacturers to innovate by using local alternatives( prefer technical partners) RMRDC………. Adding Value to the Nation's Natural Resources 49

OPPORTUNITIES • The current earnings of Nigeria as a nation is currently based mostly on natural resources (crude oil and primary raw materials)or commodities. • This can be multiplied ten fold, if the challenges identified are addressed. • Essentially that requires strategies to transform our primary raw materials to intermediates and tertiary materials. • Since every ward in the country has at least one natural resource, issues of resource control can RMRDC………. Adding Value to the Nation's Natural 50 be addressed. Resources

• • • STRATEGIES FOR EFFECTIVE LOCAL SOURCING OF RAW MATERIALS Robust National System of Innovation (NSI) National Fund for Innovation and Competitiveness More incentives for industries towards backward integration and R&D Increased Investments in Technology (venture capital) Local Content Development for non oil sector (similar to the local content board for oil and gas) Improved Research-Industry linkages Encourage in-plant R&D Promote Centres of Excellence in raw materials development Industrial skills centres, Industrial Parks/ Technology Incubation Centres Revive and sustain strategic industries (machine tools, iron and steel, foundries, machine building industries. etc) Raw Materials Processing Clusters RMRDC………. Adding Value to the Nation's Natural Resources 51

• STRATEGIC FUTURE INTERVENTIONS Current efforts in Transforming the Economy: Ø President Good. Luck Jonathan Transformation Agenda. (Power Sector Reforms, STI Policy, Silicon Valley, agricultural reforms, industrial clusters, manufacturing sector blueprint, sugar development master plan, gas master plan, National Enterprise Development Plan, NEDP, new industrial policy). Ø These laudable efforts require raw materials Ø The following raw materials should be considered for local content development in the next ten years Ø To achieve the above, we recommend the industrial cluster approach based on the Triple Helix Concept. RMRDC………. Adding Value to the Nation's Natural Resources 52

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RAW MATERIALS PROCESSING CLUSTER AS A STRATEGY • A group of processing SMEs linked together virtually or physically • Their activities involve the use of technologies to convert primary commodities to industrial raw materials and products • Location of processing cluster is determined by the availability of raw materials and markets • A processing cluster engages in related activities involving the use of same or similar raw materials common facilities , common markets, supply chains. RMRDC………. Adding Value to the Nation's Natural Resources 54

Concept of an Industrial Processing Cluster RMRDC………. Adding Value to the Nation's Natural Resources 55

SOME EXAMPLES OF EXISTING CLUSTERS Cassava Processing Cluster starch production garri production Cassava flour production glucose syrup production ethanol production Cassava Processing Cluster (CPC) mushroom production from wastes cassava pellets production animal feed productio n innovative products like bread, biscuites, cookies, etc chips production RMRDC………. Adding Value to the Nation's Natural Resources 56

Oil Palm Processing Cluster soap production vegetable oil production palm oil production Fibre production Palm kernel production mushroom production from wastes Oil Palm Processing Cluster (OPPC) Palm Kernel Oil Production basket making brooms and othe household products animal feed production glycerol production RMRDC………. Adding Value to the Nation's Natural Resources 57

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Cement Manufacturing Cluster RMRDC………. Adding Value to the Nation's Natural Resources 59

Fertilizer Processing Cluster 60 RMRDC………. Adding Value to the Nation's Natural Resources

• • • Existing Raw Materials Processing Clusters in Nigeria Rice Processing - Ebonyi, Benue , Niger, etc Leather and leather products, - Kano, Abia Textile - Ogun, Kano, Abia, Kaduna, etc Wood and Furniture - Edo, Oyo, FCT Cashew - Kogi, Enugu, Abia Sheabutter – FCT, Niger, Kwara Machine Parts – Anambra, Lagos, Oyo. Fish - Borno, Kebbi, Rivers, Cross River, Akwa Ibom Cassava – Many states There also market clusters But the clusters need to be transformed using RMRDC………. Adding Value to the Nation's Natural Resources 61 technology

RMRDC CLUSTER INITIATIVE • The vision is to see to the emergence of at least one Raw Materials Processing Cluster in every local government in Nigeria in the next 10 years • The Council is convinced that once operators are organized into formal production chains, through the formation of co-operative societies and then appropriate technical and business support are provided this vision can be realized. RMRDC………. Adding Value to the Nation's Natural Resources 62

Efforts so far on Cluster Development • • • Baseline studies completed Compendium of Raw Materials on ward basis Development of a blueprint for the cluster Stakeholders sensitization for pilot wards. Formation of Pan African Competitiveness Forum (PACF), Nigeria Chapter. Milk collection and preservation (Adamawa) Cashew Processing (Kogi, Ogun) Equipment for oil palm, plantain, fish processing awaiting installation in Bayelsa State Training of Cluster Champions with PACF Cassava and oil palm Cluster, Abia RMRDC………. Adding Value to the Nation's Natural Resources 63

LIST OF COUNCIL’S CLUSTER PROJECTS (ON-GOING) RMRDC………. Adding Value to the Nation's Natural Resources 64

CONCLUSION • Nigeria is endowed with numerous natural resources. • Currently one sector of that natural resource base (oil and gas) is partially developed • The other sectors combined (agro, mineral, renewable energy) has the potential of yielding more revenue than oil and gas. RMRDC………. Adding Value to the Nation's Natural Resources 65

Conclusion Cont’d Ø Nigeria’s potential to develop and utilize different raw materials is huge Ø Technology remains a limiting factor Ø Innovation can be enhanced in the raw materials production system through strategies that effectively apply the Triple Helix – Raw Materials Processing Clusters Ø A strategy of targeting selected raw materials for development using appropriate combinations of policy, backward integration and investment should be pursued. Ø Government and private sector effective funding of R&D can improve the current raw materials sourcing situation Ø This can be done through the take off of the proposed National Fund for Innovation and Competitiveness. RMRDC………. Adding Value to the Nation's Natural Resources 66

Conclusion Cont’d • The potential can be actualised if STI solutions are brought to bear on developing these natural resources into industrial raw materials. This requires investments. • This can lead to the emergence of thousands of STI based industries in cluster formations in each geo-political zone of the country. • This can help in solving many problems in Nigeria including unemployment, wealth creation, resource control, youth restiveness and indeed kidnapping RMRDC………. Adding Value to the Nation's Natural Resources 67

THANK YOU RMRDC - ADDING VALUE TO THE NATION’S NATURAL RESOURCES WINNER OF 2009 NATIONAL PRODUCTIVITY MERIT AWARD (May 2009) Website: www. rmrdc. gov. ng E-mail: ceo@rmrdc. gov. ng RMRDC………. Adding Value to the Nation's Natural Resources 68