The Nigerian Investment Promotion Commission (NIPC) has executed a tax exemption program that exempts 34 companies from paying tax for three years.
The tax exemption known as Pioneer Status Incentives (PSI) was given to 34 companies in 2023, and it grants a company three years of not remitting Corporate Income Tax.
Tax Exemption to 34 Companies in Nigeria: More
According to Mrs Lovina Kayode, Head of Incentives Administration, NIPC, the purpose of the tax exemption was to boost the investment drive of these companies towards the growth of Nigeria’s economy.
She however mentioned that not all companies receive incentives due to the strict procedures that guide the awarding of tax waivers.
Kayode continued that even though a big chunk of revenue is lost to tax waivers awarded yearly, the most important thing is the result, which is the amount of forex brought into the country.
She mentioned that a total of 34 applications have been approved and that with the help of the Federal Inland Revenue Service (FIRS) and the Ministry of Industry, Trade, and Investment, the NIPC is striving to ensure that the incentives go to the companies that deserve it.
She also talked about the existing belief that Nigeria grants too many waivers, incentives, and concessions, stating that the amount lost by the government to PSI is minimal compared to the size of income generated by granting these incentives to companies that qualify.
According to Kayode, the NIPC plans to publish impact assessment reports on the efficacy of the pioneer status report on job creation and other economic activities to boost investments.
The report will cover the amount of incentives granted, their impact on the country, and so on.
Furthermore, the Head of Policy and Advocacy of the commission, Mr. Salami Abayomi, mentioned how unhappy he is with the rate at which foreign investors are leaving Nigeria.
He pointed out that certain challenges are responsible for this, and stated that he is positive that by 2024, the efforts of NIPC in partnership with relevant agencies will help resolve the issue.