An analysis of the Pioneer Status (PSI) report indicates that it has 211 firms pending application, 79 firms newly received application, while 56 companies had their applications approved in principle, and 19 firms were granted incentive extensions for another three years to 2026.
“Approvals-in-principle are subject to the payment of application fees and only take effect after the payment of such fees,” the report stated.
This was disclosed in the latest Pioneer Status Incentive reports released by the Nigerian Investment Promotion Commission, seen by Journalists on Sunday.
The reports also revealed that investments made by the 107 companies during the year amounted to N2.49tn. These companies operate in sectors that include manufacturing, solid material, pharmaceuticals, information and communication, trade, construction, waste management, electricity and gas supply, tourism, and infrastructure, among others.
Pioneer status is an incentive offered by the Federal Government, which exempts companies from paying income tax for a certain period.
This tax exemption can be full or partial. Offered under the Industrial Development Income Tax Act with tax reliefs for a three-year period, the incentive is generally regarded as an industrial measure aimed at stimulating investments in the economy.
The Pioneer Status report noted that Dangote, Mikano international and about 107 companies are currently enjoying tax exemption from the Federal Government despite its insistence to discontinue the programme and drastic steps to improve its revenue base.
Accordingly, It also increased the number of beneficiaries enjoying Pioneer Status under the Industrial Development Income Tax Act by 24 from 83 in the first quarter of 2023 to 107 firms by the fourth quarter of 2023.
The products or companies eligible for this pioneer status are those that do not already exist in the country.
Although the report didn’t contain the amount granted to the companies, Data from the Federal Inland Revenue Service annual reports indicated that about 71 companies enjoyed N390.26bn pioneer status incentives between 2021 and 2022.
The companies that have benefited 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.
More included 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 included; 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.
Author
