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Nigerian govt offers 3-year tax break to 25 companies

Nigerian govt offers 3-year tax break to 25 companies

The Nigerian government has granted a tax holiday of up to three years in conformity with the provisions of the Industrial Development Income Tax Act.

Termed “pioneer status”, the tax incentive package excludes qualifying firms from the obligation of paying corporate income tax for an initial period of three years, which can be extended by additional two years.

Companies in certain sectors of the economy including Agriculture, Mining and Quarrying, Manufacturing, Electricity and Gas Supply, Construction among others are entitled to this benefit provided their capital expenditure is more than N5 million.

Some of the beneficiaries of the waiver according to the latest Pioneer Status Incentive report of the Nigerian Investment Promotion Commission (NIPC) are Obu Cement Company Limited, Royal Mills and Foods Limited, Saba Steel Industries Nigeria Limited, Pinnacles Apartments Development Limited and UVA Limited.

Fidson Healthcare Plc, Gowus Nigeria Limited, Lafarge Africa Plc, Crown Flour Mills Limited and Karshi Agro Farms Limited also made the list.

Read also: Oil price climbs near $35 on hopes of output deal

Yewande Sadiku, Executive Secretary of NIPC, disclosed that the Nigerian government was passionate about attracting investors to boost expansion across the major segments of the economy.

Mrs Sadiku noted that government had made engagements with some players in the organised private sector with a view to harnessing opportunities for trade and development in Nigeria.

She also mentioned the progress the NIPC had made in its synergy with state governments in order to track investment inflows into the country.

While spotlighting solid minerals, agriculture, transportation and manufacturing as some of the sectors of the economy that hold massive investment potential, she noted that the government was making efforts to enhance Nigeria’s ease of doing business rating.

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