The Nigeria Federal Executive Council on Wednesday approved 27 new industries and products to pioneer status to give tax holidays to them for three years to five years, as incentive to grow and expand their investments. The list was last reviewed in 2006.
The Industry, Trade and Investment Minister, Dr Okechukwu Enelamah, told State House Correspondents “The pioneer incentive scheme is governed by the Industrial Development Income Tax Relief Act and the purpose of it is to give tax holidays to industries that we consider pioneer, not mature, to enable them to grow and attract investment in them”. The incentive is in the spirit of the Economic Growth Recovery Plan.
According to the Minister, the pioneer list should be reviewed every two years and that in the case of additions to the list, it will be effected immediately. “In case of deletion from the list, there will be a three-year window that will be allowed for those investing in that industry and enjoying pioneer status to carry on till the end of that three-year period. The minister stated that the list would soon be made public.
“The whole idea is that it is an incentive to attract people to invest more in sectors,’’ he said, adding that most of the agro and agro-processing, industrialization, creative industries, power, science and technology and players should be allowed to have tax incentive. “It will increase our tax revenue instead of the reverse,’’ were the words of the Minister.