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107 companies including Dangote and Mikano International are currently enjoying tax exemption from the Nigerian Federal Government despite its insistence to discontinue the program and drastic steps to improve its revenue base.
It also increased the number of beneficiaries enjoying Pioneer Status under the Industrial Development Income Tax Act by 24 from 83 in the first quarter of 2023 to 107 firms by the fourth quarter of 2023. This was disclosed in the latest Pioneer Status Incentive reports released by the Nigerian Investment Promotion Commission and obtained by our correspondent on Sunday.
An analysis of the PSI report showed that while the requests of 79 firms were newly received, 211 firms are pending; 56 companies had their applications approved in principle, while 19 firms were granted incentive extensions for another three years to 2026. Approvals-in-principle are subject to the payment of application fees and only take effect after the payment of such fees,” the report stated. The pioneer status is an incentive offered by the Federal Government, which exempts companies from paying income tax for a certain period. This tax exemption can be full or partial. Offered under the Industrial Development Income Tax Act with tax reliefs for three years, the incentive is generally regarded as an industrial measure aimed at stimulating investments in the economy. The products or companies eligible for this pioneer status do not already exist in the country.
Although the report didn’t contain the amount granted to the companies, Data from the Federal Inland Revenue Service annual reports indicated that about 71 companies enjoyed N390.26bn pioneer status incentives between 2021 and 2022.The reports also revealed that investments made by the 107 companies during the year amounted to N2.49tn. They operate in sectors that include manufacturing, solid material, pharmaceuticals, information and communication, trade, construction, waste management, electricity and gas supply, tourism, and infrastructure, among others.
Read Also:
https://trendsnafrica.com/finance-bill-2022-many-nigerian-companies-to-lose-tax-exemptions/
https://trendsnafrica.com/nigerian-manufacturing-companies-in-doldrums/
The companies that have benefitted include Dangote Fertilizers, Mikano International Limited, Sinotrucks West Africa Limited, West African Cubes Limited, Jigawa Rice Limited, JMG Nigeria Limited, Rain Oil Limited, Okpella Cement Plc, Greenville Liquified Natural Gas Company Limited
