FG unveils plan to Introduce Tax Incentives for Local Manufacturers using local resources

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The federal government is set to introduce tax incentives for Nigerian manufacturers that use locally sourced materials in a bid to curb the high import of raw materials and other manufacturing inputs. Minister of Innovation, Science and Technology, Chief Uche Nnaji, disclosed this at the 2025 Nigeria Manufacturing & Equipment and Nigerian Raw Materials (NME – NIRAM) Expo in Lagos.

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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 patronise local raw materials will pay significantly lower taxes than those who do not,” Nnaji stated. “This is now an instrumental tool for attracting private-sector investment and stimulating technology-driven manufacturing.

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

RMRDC Director General, Prof. Martin Ike-Muonso, emphasised the need for Nigeria to reposition itself within the dynamics of the fourth industrial revolution, noting that the over-reliance on imported inputs signifies a structural weakness in the economy. “Over 70% of manufacturing inputs used in our economy are imported,” Ike-Muonso stated. “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.

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