The Nigerian Investment Promotion Commission (NIPC) has disclosed that it granted Pioneer Status Incentive (PSI) to 34 companies in 2023.
The PSI, also known as tax holidays, was granted to successful companies that applied for tax incentives or waivers last year.
The Deputy Director of Investor Relations at the Commission, Lovina Kayode, made the disclosure yesterday at a media briefing in Abuja
She said tax incentives are meant to boost foreign investments for the country even though it is becoming a contentious issue due to the high amount of revenue lost to waivers granted yearly.
Lovina stated that the commission follows stringent procedures in granting tax breaks, saying that is why only few companies benefit.
She said: “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 (FIRS) are involved to make sure the right investors get this incentive.
“So far this year, we granted 34 applications and one of the things we intend to do is to ensure we are not just giving incentives to undeserving companies. However, there is already a notion that Nigeria gives out too many waivers, incentives and concessions.
“But tax expenditure, which means what the government has lost by granting pioneers status incentive, is just a small amount compared to what the country gains by granting these incentives to qualified companies.”
She explained that the commission has plans to publish impact reports on the effectiveness of the pioneer status on job creation and other economic activities that 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?”
“How many jobs are the companies creating and what kind of import substitution has come about because we have granted these incentives; and how much would the government gain after the three years of them not paying these taxes,” she added.
Earlier, the Executive Secretary of the Commission, Aisha Rimi, restated her resolve to facilitate and assist investors to stake their investments in the country in a bid to actualise the mandate of the commission.
