FG approves tax incentives for manufacturers using local raw materials

•Nigeria’s manufacturers import 70% of their input

By Yinka Kolawole

In a bid to curb the high import of raw materials and other manufacturing inputs into Nigeria, the Federal Government (FG) is set to introduce tax incentives for Nigerian manufacturers that use locally sourced materials.

Disclosing this yesterday at the 2025 Nigeria Manufacturing & Equipment and Nigerian Raw Materials (NME – NIRAM) Expo in Lagos, Minister of Innovation, Science and Technology, Chief Uche Nnaji, said the government has approved the plan to grant Raw Materials Research and Development Council, RMRDC, the authority to implement significant tax incentives designed to reward manufacturers and innovators using locally sourced inputs in their production processes.

“Very soon, manufacturers who research, develop and patronize local raw materials will pay significantly lower taxes than those who do not. This is now an instrumental tool for attracting private-sector investment and stimulating technology-driven manufacturing,” he stated.

Under the proposed incentives the compliant firms in agro  processing, pharmaceuticals, polymers, fabric, green tech amongst others, would get tax credits, duty reliefs, investment allowances, and excise waivers.

Meanwhile, Director General of the RMRDC, Prof. Martin Ike-Muonso, has emphasised the need for Nigeria to decisively reposition itself within the dynamics of the fourth industrial revolution, noting that the over-reliance of Nigerian manufacturers on imported inputs signifies a structural weakness in the economy.

Ike-Muonso stated: “Over 70% of manufacturing inputs used in our economy are imported, according to figures released earlier this year.

“These data points expose a structural weakness: we export our raw materials in their crude form, import in refined quality, and surrender jobs and value offshore before we have even begun. But our country possesses over 120 commercially viable solid minerals, vast agricultural resources, and a demographic dividend in our young population.

“It means therefore, that what we lack is not potential, but strategic coordination, bold implementation, and technology-backed commitment. That is precisely what this Expo intends to trigger.”

In his opening remarks, President of MAN, Francis Meshioye, said by embracing cutting-edge technology solutions, manufacturers are accelerating innovation, resilience, and long-term value for their stakeholders.

Speaking on the aim of the Expo, Meshioye stated: “Our focus is to spark conversations around the deployment of energy-efficiency in production processes; implementation of smart factory protocols, including Internet of Things (IoT) and Artificial Intelligence (AI) to optimize resource use; adopt waste reduction strategies through closed-loop systems and advanced recycling methods.

“We are engendering partnerships with green tech innovators to co-develop scalable and sustainable solutions.”

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