By Dele Ogbodo/Funmi Adams
A historic milestone commences over the weekend as the Federal Government has formally granted tax relief to manufacturers and industrialists through the Raw Materials Research and Development Council (RMRDC) on the use of local raw materials for production of goods and products.
Fielding questions from journalists over the weekend at the Headquarters of RMRDC, the Director General/CEO, Prof. Nnanyelugo Ike-Muonso, who was deeply excited, said the day marks a historic milestone in Nigeria’s journey towards industrial renewal and economic transformation for our beloved country.
He said: “I’m here before you, deeply honored and immensely proud as Director/CEO of the Raw Materials Research and Development Council to announce a major breakthrough that will alter the trajectory of our industrial development and technological growth.”
He added: “Following a commendable leadership and visionary oversight of the Minister of Innovation, Science and Technology, Chief Uche Nnaji and further building upon the earlier endorsement graciously given by the Minister of Finance, Mr. Wale Edun, the 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) in the utilization of local raw materials in Nigerian industries.
Underscoring the impact the approval will trigger in Nigeria’s manufacturing space, he said this is more than a policy milestone, adding that: “It is a transformative moment, 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.
“For decades, the RMRDC has spearheaded the mission to harness Nigeria’s abundant raw material resources as a catalyst for industrial development.
“We have persistently advocated for policies that will incentivise industries to invest in local research, local talent, and local 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.”
According to Ike-Muonso, this incentive is designed to reduce cost burdens on industries that dare to innovate, build, and manufacture with locally-sourced solutions.
“It is an investment into the very DNA of our industrial ecosystem. Interestingly, the pilot plants and the research and demonstration plant complex established by the RMRDC have already demonstrated the viability of converting R&D outputs into commercial products.
“We anticipate a resounding impact across sectors – agro-based industries can now access critical tax reliefs when they prioritize local agricultural inputs in their production chains.
“Pharmaceutical manufacturers will be rewarded for formulating with indigenous botanical resources – chemical and polymer producers can explore and incorporate Nigerian minerals and agricultural by-products with confidence and financial incentive.” The DG, said.
Textile and fashion sectors are poised to benefit when they invest in home-grown cotton, dyes, and weaving technologies, he added.
The DG, further reiterates: Startups and academic institutions, too, are included in the framework because great innovation often begins at the grassroots and in the laboratory.
“This is not merely a financial tool. It is a message. It says to industry players, Nigerian values, your investment in our future.
“I must humbly express our sincere gratitude to both Chief, Uche Nnaji, Minister of Innovation, Science and Technology, and Mr. Wale Edun, Minister of Finance, respectively, their unwavering commitment to advancing national innovation has been pivotal in shaping this policy.
“This approval is the outcome of meaningful inter-ministerial collaboration. It underscores the power of synergy between science and fiscal strategy, between innovation and economic planning.
“Finally, it is important to emphasize that these guidelines are structured to support President Bola Tinubu’s Renewed Hope Agenda for industrial rejuvenation and self-reliant growth.
“We are aligned with the broader national development plans and strategic objectives of the federal government.”
However, he said the guidelines will remain public before we begin the process that will educate manufacturers and stakeholders, create an application portal, portal launch for digital platform for incentive applications, and foster monitoring and evaluation for regular audits and impact assessments.
