RMRDC received Federal Government approval on 2 July 2025 to implement tax incentives for R&D and the use of locally sourced raw materials.
Nigeria’s Raw Materials Research and Development Council (RMRDC) has announced, on 2 July 2025, that it received Federal Government approval to implement guidelines for tax incentives supporting research and development (R&D) and the use of locally sourced raw materials.
According to Chief Uche Nnaji , this initiative aligns with President Bola Tinubu’s “Renewed Hope Agenda,” which seeks to transition Nigeria from a resource-based to a knowledge-driven industrial economy. The tax incentives, originally approved in 2022 by the Minister of Finance, Budget, and National Planning, are designed to reduce dependence on imported raw materials, stimulate innovation through targeted R&D investments, and promote sustainable industrial growth.
The guidelines outline tax credits for qualifying R&D expenditures, investment allowances for innovation infrastructure, pioneer status for R&D-intensive firms, duty waivers on machinery for local processing, excise exemptions for locally sourced inputs, and tax rebates for manufacturers using Nigerian raw materials.
Professor Nnanyelugo Ike Muonso, Director-General of RMRDC, expressed the Council’s readiness to deliver impactful outcomes that will propel Nigeria’s industrial competitiveness to new levels. “With strategic implementation and stakeholder collaboration, these guidelines could redefine the future of manufacturing in Nigeria,” he stated.
The approval empowers RMRDC to administer and monitor the implementation of tax incentives, including evaluating industrial projects for eligibility and collaborating with relevant agencies to ensure compliance. The Council plans to implement the guidelines in phases, involving awareness campaigns, an application portal launch, and regular monitoring and evaluation.
