At the 2025 Nigeria Manufacturing & Equipment and Nigerian Raw Materials (NME–NIRAM) Expo held in Lagos, the Federal Government of Nigeria announced a major policy shift aimed at encouraging the use of locally sourced raw materials in the manufacturing sector. The Minister of Innovation, Science and Technology, Chief Uche Nnaji, disclosed that the government has officially granted the Raw Materials Research and Development Council (RMRDC) the authority to implement a tax incentive program designed to reward manufacturers and innovators who integrate local content into their production processes.
According to the minister, manufacturers who research, develop, and utilize indigenous raw materials will soon begin to pay significantly lower taxes compared to those who continue to rely on imports. This move, he emphasized, represents a deliberate tool for attracting private sector investment and accelerating technology-driven manufacturing across Nigeria. Under the newly approved incentive structure, qualified firms engaged in sectors such as agro-processing, pharmaceuticals, polymers, textiles, and green technology will have access to various fiscal benefits including tax credits, duty reliefs, investment allowances, and excise waivers. The focus is to deepen value addition within the country and reduce Nigeria’s heavy dependence on foreign inputs.
The Director General of RMRDC, Professor Martin Ike-Muonso, further contextualized the need for the initiative. He stated that more than 70 percent of manufacturing inputs used in Nigeria are imported, a trend which he described as a significant structural weakness. He warned that this reliance on external sources for essential materials not only weakens the economy but also results in the outsourcing of jobs and value that could be retained locally. He emphasized that Nigeria possesses over 120 commercially viable solid minerals, vast agricultural resources, and a youthful population capable of driving innovation. Yet, these assets remain underutilized due to a lack of coordinated strategy, technological support, and bold implementation.
Professor Ike-Muonso noted that the purpose of the Expo is to trigger that much-needed shift. He stressed that what Nigeria lacks is not potential, but effective execution of industrial policy backed by modern technology. In his remarks, the President of the Manufacturers Association of Nigeria (MAN), Francis Meshioye, expressed optimism about the government’s direction. He pointed out that manufacturers are increasingly adopting advanced technology solutions that enhance innovation, improve resilience, and deliver long-term value to their stakeholders. He affirmed that the industry is ready to support the government’s renewed commitment to local sourcing and industrial transformation.
This latest announcement by the federal government reinforces the broader agenda of reindustrializing Nigeria through strategic local resource utilization. It also signals new opportunities for manufacturers, investors, and development stakeholders committed to building a self-sustaining and globally competitive Nigerian economy.
