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Nigerian govt approves Tax Waivers for 46 firms; Flutterwave, others rejected

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Nigeria ranks a step higher in Foreign Direct Investment Projects to Africa

The Nigerian government has approved pioneer tax status for 33 companies for having an investment worth over N543.8 billion.

The tax waiver was granted under the Industrial Development Income Tax (IDIT) Act.

The pioneer tax status means that the 33 firms will not pay income tax for a particular period.

The waiver is contained in the first quarter report of the Nigeria Investment Promotion Commission (NIPC).

NIPC also revealed that Flutterwave alongside nine other companies’ applications were rejected.

An analysis of the quarterly report showed that besides the requests of the 10 firms that were denied, three companies had their applications approved in principle, while six firms were granted PSI for three years.

In first quarter, NIPC reports that companies with a total investment of N45.5 billion received tax waivers.

Read also: Tax waivers cost Nigeria $2.9bn annually, Oxfam says

In the second quarter, 31 firms benefitted from the tax incentive scheme, while the requests of 160 companies were still pending.

Eight firms that invested N12.8 billion got tax holidays while seven firms got approval in principle.

During the second quarter also, 31 firms benefitted from the tax incentive scheme, while the requests of 160 companies were still pending.

A breakdown of the tax incentives for the third quarter showed eight firms who invested N328.5 billion got PSI while the requests of two companies were rejected.

Also, 16 firms got approval in principle from the NIPC while 168 applications were still awaiting and 35 companies got tax incentives in Q3.

In the Q4 report of NIPC, six companies were granted tax relief for three years having invested N157.08billion

They are First Independent Power Company, Cormart Nigeria Limited, Premium Agro Chemicals Limited, West African Soy Industries Limited, Prudent Energy and Services Limited, and Checkers Africa Limited.

The Q4 report also revealed that 13 companies had their applications approved in principle while the application of one company was denied.

In total in 2021, 46 companies benefited from the tax incentive scheme while the requests of 186 companies were still pending.

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