A latest report by the Nigerian Investment Promotion Commission (NIPC), has confirmed that approximately 107 companies are currently reaping the benefits of the federal government’s tax exemption under the Pioneer Status Incentive (PSI) scheme for the fourth quarter of 2023.
This tax holiday initiative is aimed at fostering economic growth by encouraging investments in various sectors.
The PSI, outlined in the Industrial Development Income Tax Act, offers a tax holiday to qualified industries, allowing them to enjoy a three-year exemption from corporate income tax, with a possible extension for one or two additional years.
This incentive is recognized as a strategic measure to stimulate economic investment across different industrial sectors.
The recent NIPC report indicates a significant increase in the number of beneficiaries, rising from 83 in the first quarter of 2023 to 107 by the end of the fourth quarter.
These firms have collectively invested more than N2.49 trillion throughout the year, showcasing the substantial impact of the PSI on the Nigerian economy.
The range of sectors benefiting from the tax holiday includes manufacturing, solid materials, pharmaceuticals, information and communication technology, trade, construction, waste management, electricity and gas supply, tourism, hotel development, agriculture, and more.
The NIPC’s report also highlighted that 79 new applications for the PSI were received, with 211 pending and 56 approved in principle.
Furthermore, 18 companies were granted extensions on their tax holiday, including Honeywell Flour Mill and four other firms, which received a two-year extension.
This expansion of the PSI beneficiaries underscores the federal government’s commitment to enhancing Nigeria’s investment climate and supporting the growth of diverse economic sectors through fiscal incentives.
NIPC said, “Extension approvals are subject to the payment of application fees and only take effect after the payment of such fee.
“Approvals-in-principle are subject to the payment of application fees and only take effect after the payment of such fees.”
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
Also on the list are GZ Transport and Logistics Nigeria Limited, African Foundries Limited, Royal Pacific Group Limited, Kunoch Hotels Limited, Princess Medi Clinics Nigeria Limited, Medlog Logistics Limited, and Masters Liquefied Gas Company Limited.
Others are Aarti Rolling Mills Limited, Von Automobile Nigeria Limited, Ikorodu Steel Mills Limited, Confluence Metals Fabrication Company Limited, Cormart Nigeria Limited, Tiamin Rice Limited, Outsource Global Technologies Limited, Crown Flour Mills Limited, Elvis Hotels Nigeria Limited, Olam Hatcheries Limited, among others
