FG approves tax incentives for research, development of local raw materials

The Raw Materials Research and Development Council (RMRDC) has received approval to implement guidelines for tax incentives targeted at fostering Research and Development as well as the utilisation of local raw materials in Nigerian industries.

Nnanyelugo Ike-Mounso, Director General and CEO of RMRDC, while briefing the media in Abuja on Friday, said, “The Raw Materials Research and Development Council has now received full and formal approval to implement the much-anticipated guidelines for tax incentives targeted at fostering Research and Development (R&D) and the utilisation of local raw materials in Nigerian industries.”

Read also: Expert advocates grants, tax incentives for interior design industry

He said the approval is more than a policy milestone, but rather a transformative moment, adding that it’s “a clarion call to Nigerian researchers, manufacturers, innovators, and entrepreneurs. It is a signal that the government is not only listening but acting to create fertile ground for sustainable industrial innovation and economic diversification.”

The DG recalled that for decades, the RMRDC had spearheaded the mission to harness Nigeria’s abundant raw material resources as a catalyst for industrial development.

“We have persistently advocated for policies incentivising 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,” he said.

Read also: Tax incentives and refunds: Nigeria’s chance to fix its revenue problem

Ike-Mounso, Professor, revealed other key features of the tax incentive to include rewarding industries for investing in local research, local talent, and local resources and reducing cost burdens on industries that innovate, build, and manufacture with locally sourced solutions.

He added that the incentives apply to various sectors, including agro-based industries, pharmaceuticals, chemicals, and textiles

He added that the expected impact of the tax incentive approval includes reducing reliance on imports, strengthening the value chain, creating opportunities for local suppliers and producers, fostering job creation and economic growth as well as supporting President Bola Tinubu’s Renewed Hope Agenda for industrial rejuvenation and self-reliant growth