The Raw Materials Research and Development Council (RMRDC) has secured federal approval to implement new guidelines for tax incentives aimed at promoting research and development (R&D) in the use of local raw materials across Nigerian industries.
The director-general of RMRDC, Prof. Nnanyelugo Ike-Mounso described the approval as a major policy milestone in Nigeria’s quest for industrial development and technological self-sufficiency. He disclosed this during a press briefing held in Abuja following the Ministerial green light for the tax incentive framework.
“This marks a significant breakthrough. The new tax incentive not only encourages companies to invest in R&D but rewards those that utilize Nigerian-sourced raw materials,” Ike-Mounso stated. “It reduces our dependence on imports, strengthens the domestic value chain and creates broader opportunities for local suppliers and producers.”
He noted that the tax relief percentages will be determined by appropriate tax authorities and will directly benefit manufacturers and industrial stakeholders who comply with the established criteria.
“This incentive is designed to ease the financial burden on industries that are bold enough to innovate with local solutions. It’s not just a fiscal tool, it is a clear message to investors: ‘Nigeria values your investment in our future,’” he added.
The new framework is expected to impact several key sectors, including agro-processing, pharmaceuticals, chemicals, textiles, technology startups, and academic research institutions. According to Ike-Mounso, the incentive scheme is part of a broader industrial strategy to deepen local content and drive economic transformation.
He further revealed that the approval was the result of sustained inter-ministerial collaboration between the Federal Ministry of Innovation, Science and Technology and the Ministry of Finance.
To facilitate access and ensure transparency, the council plans to launch a digital application portal where eligible businesses can apply for the incentives. “We will soon release the full guidelines to the public. Stakeholders will be educated and we will implement robust monitoring and evaluation systems, including regular audits and impact assessments,” Ike-Mounso assured.
Speaking at the event, director of planning, statistics and policy at RMRDC, Rachel Kotso reiterated that manufacturers and small and medium-sized enterprises (SMEs) that comply with the guidelines will benefit from the tax relief. She emphasised that the goal is to stimulate industrial productivity and encourage innovation through strategic support for local R&D and raw material use.
“This is a proactive step to ensure Nigerian industries grow sustainably by building on indigenous capacity,” Kotso added.
The Council reaffirmed its commitment to ensuring that this initiative supports long-term economic development, job creation, and the broader goals of national industrialisation.
