In a strategic move to reduce Nigeria’s dependence on imported raw materials, the Federal Government has announced the introduction of tax incentives for manufacturers who adopt locally sourced inputs in their production processes.
This announcement was made at the 2025 Nigeria Manufacturing & Equipment and Nigerian Raw Materials (NME–NIRAM) Expo held in Lagos. Speaking at the event, the Minister of Innovation, Science and Technology, Chief Uche Nnaji, revealed that the government has approved the empowerment of the Raw Materials Research and Development Council (RMRDC) to oversee the rollout of substantial fiscal incentives aimed at encouraging local sourcing.
“Very soon, manufacturers who research, develop, and utilize local raw materials will pay significantly lower taxes than those who rely on imported inputs,” Nnaji said. “This initiative will serve as a key driver in attracting private-sector investment and stimulating a technology-driven manufacturing sector.”
Under the new framework, qualifying manufacturers in sectors such as agro-processing, pharmaceuticals, polymer production, textiles, and green technology will benefit from tax credits, duty waivers, investment allowances, and excise duty reliefs.
A Shift from Import Dependency
Director General of RMRDC, Prof. Martin Ike-Muonso, emphasized the urgency of reversing Nigeria’s over-reliance on foreign inputs. He cited recent data showing that over 70% of raw materials used in manufacturing are imported.
“This reflects a structural weakness in our economy,” he noted. “We export our raw materials in crude form, import them refined, and in the process, we outsource jobs and economic value. Yet, Nigeria is rich in resources — from over 120 commercially viable solid minerals to vast agricultural potential and a youthful population.”
He stressed that the challenge is not a lack of potential, but a deficit in strategic coordination and implementation, which the new policy and ongoing expo aim to address.
Industry Leaders Back Innovation Drive
In his remarks, President of the Manufacturers Association of Nigeria (MAN), Francis Meshioye, expressed optimism about the direction of the industry. He highlighted how technology adoption is driving innovation, sustainability, and stakeholder value.
“The focus of this year’s expo is to ignite discussions around energy-efficient production, the adoption of smart factory systems like IoT and AI, and the implementation of closed-loop waste systems,” Meshioye stated. “We’re also forging partnerships with green technology innovators to co-develop scalable and sustainable solutions.”
Conclusion
With the launch of these tax incentives, the Federal Government is signaling a strong commitment to transforming Nigeria’s manufacturing landscape. By promoting the use of local resources and encouraging innovation, the new policy is expected to enhance industrial sustainability, create jobs, and reduce Nigeria’s import bill in the long term.
