The Nigerian Investment Promotion Commission (NIPC) said it had granted three years tax exemption to 34 companies in 2023.
Lovina Kayode, head of incentives administration, NIPC, told journalists in Abuja that the exemption was to promote the company’s investment drive towards developing 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 owing to the stringent procedures followed by the commission on waiver awards.
While acknowledging the high amount of revenue lost to waivers granted every year, Ms Kayode said what mattered was the bigger picture, the amount of forex brought into the country.
“The Federal Inland Revenue Service(FIRS) and our parent ministry, the Ministry of Industry, Trade and Investment, are also part of this process to ensure that the right investors get this incentive.
“So far, 34 applications have been approved, and one of the things we intend to do is to ensure that 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 means what the government has lost by granting PSI, was just a small amount compared to the gains made by granting these incentives to qualified companies.”
