A Nigerian science and technology researcher, Dr Philip Osim, has urged the Federal Government to introduce targeted tax incentives and investment support measures to accelerate the development of the country’s bioeconomy.
Osim said such policies would make it easier for private companies to invest in biotechnology, bio-based manufacturing and other businesses that depend on biological resources.
He made the recommendation in an interview with the News Agency of Nigeria (NAN) in Abuja on Monday.
According to the researcher, government funding alone cannot provide the capital needed to develop the sector. Private investors must also be encouraged to participate through policies that reduce business risks and make returns more predictable.
He proposed tax holidays for qualifying businesses, import duty exemptions on laboratory equipment and reagents, as well as accelerated capital allowances for companies investing in bioeconomy-related ventures.
Osim explained that start-ups and research-driven businesses often face substantial costs when importing specialised equipment and materials needed to develop and test new products.
He warned that these expenses could discourage investment and make entrepreneurs move promising projects to countries where operating conditions are more favourable.
The researcher also called for government-backed co-investment programmes and credit guarantees to encourage banks, venture capital firms and other private financiers to support early-stage businesses.
He identified agro-processing, biofuel production and biomanufacturing as areas where such financing arrangements could help attract investment.
Osim said public funding should be used to reduce some of the initial risks facing investors, rather than serve as the only source of finance for the sector.
He stressed that predictable regulations were equally important, particularly in areas such as biosafety and intellectual property protection.
According to him, investors are unlikely to commit substantial funds to long-term industrial projects if government policies and regulatory requirements frequently change.
Osim further advocated stronger partnerships between Nigerian universities and private companies, noting that many research discoveries in the country fail to progress from laboratories into commercially viable products.
He said Nigeria already had scientific expertise and rich biological resources but needed more effective systems to turn research into marketable goods and services.
The researcher expressed confidence that a supportive investment climate could help the bioeconomy create jobs, strengthen agricultural value chains, reduce dependence on imported products and improve Nigeria’s position in the regional biotechnology market.
The Food and Agriculture Organisation (FAO) describes the bioeconomy as the production, use, conservation and regeneration of biological resources across economic sectors.
