The Minister of Industry, Trade and Investment, Okechukwu Enelamah, on Wednesday said 27 pioneer industries and enterprises would enjoy three to five years tax holiday in Nigeria under the Industrial Development Income Tax Relief Act.
Enelamah, disclosed this to State House correspondents at the end of a meeting of the Federal Executive Council (FEC) presided over by Acting President Yemi Osinbajo.
The pioneer status incentive is a tax holiday given to companies for a period of time to encourage the growth and development of the Nigerian economy. A new company or an existing one with an expansion plan may apply for a certificate of pioneer status, which lasts for three years and is renewable upon application for two years.
It may also be a seven-year tax holiday in respect of industries located in economically disadvantaged local government areas of the country.
Enelamah said the council also resolved that that oil prospecting companies governed by the Petroleum Profit Tax should not be included in the pioneer industries’ list.
The minister, however, did not reveal the 27 industries added to the list.
He said “firms covered by the pioneer industries’ list would enjoy tax holidays ranging from three to five years.
While recalling that the last review of the list was done in 2006, Enelamah stated that the latest review was done by paying special attention to the Economic Recovery and Growth Plan to capture the current realities.
He said the review would help the government to implement and realise the objectives of the ERGP.
The minister stated, “Against this backdrop, we then approved 27 industries that were recommended for addition to the pioneer list today.
“We also recommended and it was accepted by the council that mineral oil prospecting, which is governed by the Petroleum Profit Tax, should not be part of the pioneer industries’ list, which is meant for industries governed by the Companies Income Tax.”
