The Federal Government has granted formal approval to the Raw Materials Research and Development Council (RMRDC) to implement tax incentive guidelines aimed at promoting research and development (R&D) and the use of local raw materials across industries in Nigeria.

The approval was announced on Friday by the Director-General of RMRDC, Prof. Nnanyelugo Ike-Muonso, at a press briefing in Abuja.

Speaking, Ike-Muonso said the policy endorsed by the Minister of Innovation, Science and Technology, Chief Uche Nnaji, and the Minister of Finance, Wale Edun, would grant tax relief to manufacturers and startups who prioritise indigenous inputs in their production processes.

The DG noted that although the guidelines for the incentives had existed since 2022, lack of implementation delayed progress.

Ike-Muonso explained that the incentives would cut costs for industries that embrace locally sourced materials and reduce pressure on foreign exchange.

According to him, companies that replace imported concentrates with locally produced alternatives would receive substantial tax reliefs.

He credited the Policy, Planning and Statistics Directorate for coordinating engagements with key stakeholders, including the Federal Inland Revenue Service (FIRS), which eventually paved the way for the implementation phase.

He added that the impact will cut across sectors: agro-based industries, pharmaceutical companies, chemical and polymer producers, textile manufacturers, and even academic institutions and startups will all be eligible.

He said: ?For decades, the RMRDC has spearheaded the mission to harness Nigeria?s abundant raw material resources as a catalyst for industrial development. We have consistently advocated for policies that incentivise industries to invest in local research, talent, and resources. Today, that vision takes flight.

?The new tax incentive framework not only encourages companies to invest in R&D activities but also rewards them for utilizing Nigerian-sourced raw materials?thus decreasing our reliance on imports, strengthening our value chain, and creating opportunities for local suppliers and producers.

?This incentive is designed to reduce cost burdens on industries that dare to innovate, build, and manufacture with locally sourced solutions. It is an investment into the very DNA of our industrial ecosystem.

Responding to questions from journalists, the DG clarified that while the exact tax reduction would be subject to evaluation and recommendation by RMRDC, implementation would depend on measurable benefits such as foreign exchange savings, employment generation, and industrial substitution.

He assured that the Council would soon roll out awareness campaigns, stakeholder meetings, and a digital application portal to guide manufacturers on how to benefit from the scheme.

According to him, the initiative aligns with President Bola Ahmed Tinubu?s Renewed Hope Agenda and the push for an 80 per cent local content threshold in Nigeria?s industrialization efforts. (The Guardian)

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