According to the Nigerian Investment Promotion Commission (NIPC), a total of 107 companies are currently receiving tax exemptions from the federal government. This information was disclosed in the NIPC’s fourth quarter report for 2023, focusing on applications for the pioneer status incentive (PSI).
The pioneer status incentive provides qualifying industries and products with a tax holiday, exempting them from paying corporate income tax for an initial period of three years, with the possibility of extension for one or two additional years. This measure is designed to stimulate economic investment and development.
The report highlighted a significant increase in the number of beneficiaries enjoying pioneer status under the Industrial Development Income Tax Act, rising from 83 companies in the first quarter of 2023 to 107 by the fourth quarter. Additionally, the report outlined that 79 new firms submitted requests for the incentive, with 211 applications pending, and 56 companies had their applications approved in principle.
Source: Vanguard