HomeNewsNigeria to Offer Tax Breaks for Local Input Use

Nigeria to Offer Tax Breaks for Local Input Use

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KEY POINTS


  • The government announced tax incentives to encourage the use of local raw materials.
  • Nigeria imports over 70 percent of manufacturing inputs.
  • Manufacturers are urged to embrace artificial intelligence (AI) and green technology.

Nigeria is moving to reward manufacturers who use locally sourced raw materials with a new slate of tax incentives, part of a broader push to reduce the country’s overwhelming dependence on imported inputs.

The new policy, announced Tuesday at the 2025 Nigeria Manufacturing & Equipment and Nigerian Raw Materials Expo (NME–NIRAM) in Lagos, empowers the Raw Materials Research and Development Council (RMRDC) to implement tax reliefs for firms adopting local inputs in their production lines.

Tax incentives for local raw material use

Innovation and Science Minister Uche Nnaji said the new plan will lower the tax burden for manufacturers who research, develop, and apply indigenous raw materials, making it a key instrument for attracting private investment and accelerating homegrown innovation.

“Very soon, manufacturers who embrace local materials will pay significantly less tax than those who do not,” Nnaji told industry stakeholders.

Nigeria imports over 70 percent of inputs

Despite being resource-rich, Nigeria imports more than 70 percent of its manufacturing inputs, a fact RMRDC Director General Martin Ike-Muonso says is both unsustainable and structurally weak.

“We export in crude form, import in refined quality, and outsource jobs and value,” he said. “Yet we have over 120 commercially viable solid minerals, vast agriculture, and a vibrant youth population.”

He urged bolder policy implementation backed by technology and coordination. He described the Expo as a platform to trigger the transformation Nigeria needs.

Green tech, AI, and IoT take center stage

President of the Manufacturers Association of Nigeria (MAN), Francis Meshioye, emphasized the role of advanced technologies in future-proofing the sector.

Meshioye said the focus now is on scaling energy-efficient processes and adopting AI and IoT for resource optimization. He added that waste reduction is also a priority, driven by smart recycling systems.

“We’re forming partnerships with green tech innovators to co-develop scalable solutions,” he said.

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