Abuja, Dec. 31, 2023:The Nigerian Investment Promotion Commission (NIPC) has granted three years tax exemption to 34 companies in 2023.
Mrs Lovina Kayode, Head of Incentives Administration, NIPC, told newsmen in Abuja that the exemption was to promote the company’s investments and to grow the nation’s economy.
“This tax exemption known as Pioneer Status Incentives (PSI) is executed under the Investors Relations Department of the NIPC and allows a company three years of not paying Corporate Income Tax,” she said.
According to her, not all companies are granted incentives due to stringent procedures followed by the commission on waivers awards.
While acknowledging the high amount of revenue lost to waivers granted every year, Kayode said what mattered was the bigger picture, amount of forex brought into the country.
She said, “The Federal Inland Revenue Service(FIRS) and our parent ministry, the Ministry of Industry Trade and Investment, is also part of this process to ensure the right investors get this incentive.
“So far this year, 34 applications have been approved, and one of the things we intend to do is to ensure we are not just giving incentives to undeserving companies.
“Meanwhile, there is already a notion that Nigeria gives out too many waivers, incentives, and concessions.
“However, tax expenditure, which means what the government has lost by granting PSI, is just a small amount compared to what the country gains by granting these incentives to qualified companies.”
Kayode revealed plans by the commission to publish impact assessment reports on the effectiveness of the pioneer status report on job creation and other economic activities to promote investments.
“On impact, that is one thing NIPC is planning on, next year, it is one of our biggest tasks to do an impact assessment.
“These incentives we gave out, how have they impacted the country in terms of job creation and what kind of import substitution has come about because we granted these incentives.
“And how much will the government gain after the three years of them(the companies( not paying these taxes,” she added.
The Head, Policy and Advocacy of NIPC, Salami Abayomi, expressed displeasure at the rate at which foreign companies/investors were leaving the country.
According to him, a lot of challenges are responsible for this development, but the commission is already collaborating with relevant agencies in the country to address the issue.
He expressed optimism that by 2024, the efforts of the agencies in that regard would yield positive impact.
Earlier, NIPC’s Executive Secretary, Aisha Rimi, reiterated the commission’s commitment to facilitate and assist investors to gain inroad into the country.