The Nigerian Investment Promotion Commission (NIPC) announced the approval of three years of tax exemption, known as the pioneer status incentives (PSI), for 34 companies in 2023. Lovina Kayode, Head of Incentives Administration at NIPC, revealed this during a year-end press briefing in Abuja.
Kayode explained that the PSI offers a tax holiday, exempting qualifying industries and products from corporate income tax for an initial three years, potentially extendable for one or two additional years. She emphasized the meticulous procedures followed by the commission in awarding waivers, ensuring deserving companies benefit from these incentives.
She clarified that while tax incentives have been a topic of contention due to revenue loss, their aim is to attract foreign investments, adding that the country gains substantially compared to the tax expenditure incurred through these incentives.
Highlighting future plans, Kayode mentioned the commission’s intent to publish impact assessment reports, evaluating the pioneer status incentive’s effectiveness in stimulating job creation and economic activities.
Aisha Rimi, Executive Secretary of NIPC, reiterated the commission’s commitment to supporting investors entering and operating within Nigeria in the upcoming year. She emphasized the crucial role of the commission in bridging the gap between the private sector and the government to ensure a conducive environment for domestic and foreign investors.
Rimi emphasized the importance of providing support to investors, acknowledging the competitive global landscape and the necessity of attracting and retaining investment opportunities in Nigeria for mutual benefit.
