The Raw Materials Research and Development Council RMRDC has received Ministerial approval empowering it to implement the guidelines for tax incentives targeted at fostering Research and Development (R&D) and the utilization of local raw materials in Nigerian industries.
The Director General of RMRDC Prof Nnanyelugo Ike-Muonso revealed this in a press briefing with Journalists in Abuja Nigeria’s capital.
Prof Ike-Muonso stated that for decades, the RMRDC have persistently advocated for policies that would incentivise industries to invest in local research, local talent, and local resources.
The DG noted that 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 reliance on imports, strengthening value chain, and creating opportunities for local suppliers and producers.
“Let me reiterate: 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”. He stated.
Demonstrating the viability of the already established Research and Demonstration pilot Plant Complex by RMRDC in converting R&D outputs into commercial products, the DG said “We anticipate 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, Textile and fashion sectors are poised to benefit when they invest in homegrown cotton, dyes, and weaving technologies, Startups and academic institutions, too, are included in the framework because real innovation often begins at the grassroots and in the laboratory”.
While emphasizing that these guidelines are structured to support President Bola Ahmed Tinubu’s Renewed Hope Agenda for industrial rejuvenation and self-reliant growth, Prof Ike-Muonso also expressed his appreciation to the forces behind the success of the policy.
“I must humbly express our sincere gratitude to both Chief Uche Nnaji, Honourable Minister of Innovation, Science and Technology, and Mr. Wale Edun, Honourable Minister of Finance respectively. Their unwavering commitment to advancing national innovation has been pivotal in shaping this policy” he said.
The DG also announced that “the guidelines will be made public before we begin the process that would educate manufacturers and stakeholders, create an application portal launch for digital platform for incentive applications, and foster monitoring & evaluation for regular audits and impact assessments.
Jide Johnson.