The Nigerian Investment Promotion Commission (NIPC) announced on Friday that it has approved tax holidays for 34 companies seeking tax incentives and waivers under the Industrial Development Income Tax Act in 2023. This information was revealed by Lovina Kayode, the Head of Incentives Administration, during an end-of-the-year press briefing organized by the commission in Abuja.
Tax incentives, a subject of contention due to the revenue lost to waivers granted annually, are intended to stimulate foreign investments in the country. Earlier reports had disclosed that companies operating in Nigeria receive tax incentives worth N6 trillion annually, prompting discussions on the need for a comprehensive review to reduce tax waivers.
While addressing the press, Lovina Kayode explained the stringent procedures followed by the commission in granting tax breaks, emphasizing that not all companies are eligible for such incentives. She stated, “The pioneer status incentive is a stimulus that allows a company to get three years of not paying corporate income tax, just to attract more investments.”
Highlighting the commission’s commitment to transparency, Kayode mentioned plans to publish impact reports on the effectiveness of pioneer status incentives in promoting job creation and other economic activities. She emphasized the importance of evaluating how these incentives have impacted the country in terms of job creation and import substitution.
Aisha Rimi, the Executive Secretary of the commission, reiterated the commitment to facilitating and assisting investors in gaining entry into the country in the New Year. She emphasized the need for intentional efforts to support and promote the activities of the commission, acknowledging the competitive landscape as other countries vie for investors.
