By Chukwuma Ngaha
In a landmark development aimed at revitalizing Nigeria’s manufacturing sector, the Federal Government, has granted approval to the Raw Materials Research and Development Council (RMRDC) to implement guidelines for tax incentives focused on research and development (R&D) and local raw materials utilization.
The Honourable Minister of Innovation, Science, and Technology (FMIST), Chief Geoffrey Nnaji made this known in Abuja on Wednesday 2nd July 2025.
According to Chief Uche Nnaji , this initiative aligns with President Bola Tinubu’s “Renewed Hope Agenda,” which seeks to transition Nigeria from a resource-based to a knowledge-driven industrial economy. The tax incentives, originally approved in 2022 by the Minister of Finance, Budget, and National Planning, are designed to reduce dependence on imported raw materials, stimulate innovation through targeted R&D investments, and promote sustainable industrial growth.
The guidelines outline tax credits for qualifying R&D expenditures, investment allowances for innovation infrastructure, pioneer status for R&D-intensive firms, duty waivers on machinery for local processing, excise exemptions for locally sourced inputs, and tax rebates for manufacturers using Nigerian raw materials.
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Professor Nnanyelugo Ike Muonso, Director-General of RMRDC, expressed the Council’s readiness to deliver impactful outcomes that will propel Nigeria’s industrial competitiveness to new levels. “With strategic implementation and stakeholder collaboration, these guidelines could redefine the future of manufacturing in Nigeria,” he stated.
The approval empowers RMRDC to administer and monitor the implementation of tax incentives, including evaluating industrial projects for eligibility and collaborating with relevant agencies to ensure compliance. The Council plans to implement the guidelines in phases, involving awareness campaigns, an application portal launch, and regular monitoring and evaluation.
Industry leaders and stakeholders have welcomed the move, calling for sustained government support and timely disbursement of incentives to maintain momentum.
This landmark approval is a bold declaration of Nigeria’s intent to lead in industrial innovation and resource efficiency. With effective implementation, the tax incentives are expected to foster job creation, increase foreign direct investment, enhance global competitiveness, and reduce foreign exchange pressure.
