The Nigerian Government granted 12 companies tax holidays in the first quarter of 2024.
The Nigerian Investment Promotion Commission, NIPC, disclosed this in its latest report on the Pioneer Status Incentive (PSI) initiative.
The new approvals brought the number of companies benefitting from the 3-year tax holiday to 104 at the end of Q1, 2024.
The 12 companies include Fouani Nigeria Limited; Neway Power Technology Company Limited; Starich Recycle Technologies Company Limited; Gerawa Rice Mills Limited; Shafa Energy Limited; Mafa Rice Mills Limited; A. A Rano Nigeria Limited (haulage); and A.A Rano Nigeria Limited (Natural gas supplier).
Others are Basma Agric Processing Limited; Flex Films Africa PVT Limited; Addmie Nutrition Limited; and Dufil Prima Foods Plc.
The Head of Incentives Administration at the NIPC, Lovina Kayode, recently explained that the initiative is to boost foreign direct investment.
“The pioneer status incentive is a stimulus that allows a company to get three years of not paying corporate income tax, just to get more investments.
“This process is stringent because our parent ministry and the federal inland revenue service are involved to ensure the right investors get this incentive,” she said
Meanwhile, the Federal Inland Revenue Service, FIRS, has inaugurated a joint committee with NIPC to review the implementation of the PSI.
The development comes as the Federal Government ramps up efforts to achieve its N19.4 trillion revenue target for 2024.