The Federal Government is taking bold steps to reduce Nigeria’s overdependence on imported raw materials — and the ripple effect could transform the construction, housing, and real estate sectors.
At the 2025 Nigeria Manufacturing & Equipment and Nigerian Raw Materials Expo (NME–NIRAM) in Lagos, the Minister of Innovation, Science and Technology, Chief Uche Nnaji, announced a government-backed plan to grant the Raw Materials Research and Development Council (RMRDC) full authority to implement tax incentives for manufacturers using locally sourced inputs.
New Incentives for Local Production
“Very soon, manufacturers who research, develop and patronize local raw materials will pay significantly lower taxes than those who do not,” Nnaji stated.
This move aims to:
- Attract private-sector investment
- Promote technology-driven manufacturing
- Reduce production costs
- Encourage the growth of local supply chains
Industries that stand to benefit include:
- Construction materials (cement, roofing, ceramics)
- Pharmaceuticals
- Agro-processing
- Polymers and green tech
🏗️ What It Means for Real Estate Development
At Property Media Week, we see this policy as a potential breakthrough for property developers, builders, and housing investors.
If local manufacturers are incentivized to produce bricks, blocks, roofing sheets, paints, doors, and tiles using Nigerian raw materials, this could lead to: Lower construction costs, Shorter supply chains, Reduced housing prices, More accessible building inputs for SMEs and estate developers
🧠 Why Local Sourcing Matters Now
According to RMRDC DG Prof. Martin Ike-Muonso, Nigeria still imports over 70% of its manufacturing inputs. This structural gap has:
- Drained foreign exchange
- Exported jobs
- Limited industrialization
“We export raw and import refined, surrendering jobs and value offshore… What we lack is not potential, but strategic coordination,” Ike-Muonso said.
With Nigeria’s vast untapped natural resources — over 120 commercially viable solid minerals and strong agricultural potential — the push for local manufacturing may be the missing link in achieving housing affordability.
